M1 Is a Measure of

question 506

Multiple Choice

M1 is a measure of

• A) money and includes both savings deposits and currency.
• B) liquidity and in which the most liquid asset is money.
• C) money and includes both savings deposits and money market mutual funds.
• D) money and includes both currency and checking deposits.

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Definitions:

Liquid

A state of matter that is fluid, conforms to the shape of its container, and has a definite volume but no fixed shape.

Plasma

The liquid part of the lymph and blood.

Electrolytes

Minerals in your blood and other body fluids that carry an electric charge and affect the amount of water in your body, the acidity of your blood (pH), your muscle function, and other important processes.

Capillaries

Microscopic blood vessels connecting arterioles and venules.