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.

---

Definitions:

Liberal Internationalism

A foreign policy doctrine that emphasizes international cooperation, the promotion of democracy, and the use of international institutions to achieve peace and prosperity.

Niagara Movement

An early 20th-century African American civil rights organization that sought to oppose racial segregation and disenfranchisement.

Dollar Diplomacy

A foreign policy strategy used by the United States to influence Latin American and East Asian countries through economic means rather than military coercion.

Progressive Presidents

Presidents who advocated for reforms to address inequities, corruption, and other societal problems during the Progressive Era in the early 20th century.