Deposits in Passbook Savings Accounts at an S&L Are

question 41

Multiple Choice

Deposits in passbook savings accounts at an S&L are

• A)not counted as money since they are not held at commercial banks
• B)included in M1 but not in M2
• C)included in M1 and in M2
• D)not included in M1 but included in M2
• E)not included in M1 or M2, since they are not demand deposits

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Definitions:

Spot Exchange Rate

The current exchange rate at which one currency can be traded for another immediately.

Arbitrage

The strategy of exploiting price differences of identical or similar financial instruments across different markets to gain profit with minimal risk.

Futures Price

The agreed-upon price for the sale of an asset at a future date, typically used in commodities and financial instrument trading.