Use the Following to Answer Questions

question 112

Multiple Choice

Use the following to answer questions .
Exhibit: Components of the Money System

-(Exhibit: Components of the Money System) The difference between M1 and M2 amounts to

• A) $325 billion.
• B) $350 billion.
• C) $450 billion.
• D) $1,275 billion.

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Definitions:

Semiannual Coupon

A fixed interest payment on a bond that is made twice a year.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all paid interest and principal repayments.

Market Price

The ongoing financial rate for purchasing or selling an asset or service.

Par Value

The face value of a bond or the stock value stated in the corporate charter, not necessarily reflecting the market value.