The Distinction Between M1 and M2 Has Blurred Over Time

question 115

Multiple Choice

The distinction between M1 and M2 has blurred over time because:

• A)M1 is now larger than M2.
• B)depositors can transfer funds between accounts easily.
• C)the Federal Reserve has defined them less precisely.
• D)M1 is becoming less liquid.
• E)banks are now offering time deposits.

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Definitions:

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his concepts of the collective unconscious and archetypes.

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