The Difference Between M1 and M2 Is That

question 143

Multiple Choice

The difference between M1 and M2 is that:

• A)the former includes notice deposits.
• B)the latter includes personal saving deposits and non-personal notice deposits.
• C)the latter includes government bonds.
• D)the latter includes cash held by chartered banks.

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Definitions:

Demand And Supply

Economic model describing the interaction between the desire of consumers to buy goods at certain prices and the quantity of goods that producers are willing to sell at those prices.

Factors Of Production

Four basic inputs for effective operation: land, labor, capital, and entrepreneurship.

Overall Supply

The total amount of a product or service available in a market at any given time.

Economic Growth

Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time, often measured as the percentage increase in real gross domestic product (GDP).