Which of the Following Is NOT Included in the M2

question 119

Multiple Choice

Which of the following is NOT included in the M2 definition of money?

• A) savings deposits
• B) checkable deposits
• C) money market mutual fund balances
• D) currency held by banks

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Definitions:

Market Economy

An economic system in which supply and demand from consumers primarily control the production and distribution of goods and services.

Medium of Exchange

Any item sellers generally accept and buyers generally use to pay for a good or service; money; a convenient means of exchanging goods and services without engaging in barter.

Coincidence of Wants

A situation in barter economies where two parties each possess goods or services that the other desires, enabling a direct exchange without the need for a common medium of trade.

Circular Flow Diagram

The circular flow diagram is an economic model that shows how money moves through an economy between producers and consumers, illustrating the continuous flow of goods and services and financial transactions.