Which of the Following Statements Best Summarizes the Difference Between

question 18

Multiple Choice

Which of the following statements best summarizes the difference between M-1 and M-2?

• A)The M-1 definition of the money supply considers only domestic currencies while the M-2 definition includes foreign currencies.
• B)The M-1 definition consists of "hard" currencies which are backed by gold and silver,while M-2 consists of "soft" currencies which are not backed by gold and silver.
• C)The M-2 definition includes everything in the M-1 definition,plus additional components such as money in savings accounts,money market accounts,and certificates of deposit.
• D)The M-1 money supply consists only of the currency coins and paper money)that circulates in our economy,while the M-2 includes traveler's checks and funds in demand deposits.

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Definitions:

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.

Responsiveness

The ability of a company or organization to quickly and effectively respond to customer needs, changes in the market, or operational challenges.

Key Success Factor

Critical elements or factors that are essential for an organization to achieve its business objectives and be successful.

Core Competency

Fundamental strength or advantage that a business possesses, central to its operations and critical to its long-term success.