If You Need Cash You Can Go to the Bank

question 210

Essay

If you need cash you can go to the bank and withdraw some of your savings. If you have some U.S. treasury bonds, you can also "cash" them in. Why, then, does the definition of money include savings accounts but not government bonds as part of the M2 money supply?

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, responsible for connecting the central nervous system to the rest of the body.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Interneurons

Specialized neurons that act as intermediaries, transmitting impulses between other neurons, particularly within the brain and spinal cord.

Efferent

Nerve fibers that carry signals away from the central nervous system to effectors such as muscles and glands.