Which of the Following Is Part of M1

question 65

Multiple Choice

Which of the following is part of M1?
I.currency in a bank's vault
II.cash in your purse
III.checkable deposits
IV.traveler's checks

• A)I, II, III, and IV
• B)I, II, and III
• C)II and III
• D)II, III, and IV

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Definitions:

Real Wage

The purchasing power of wages, adjusted for inflation, reflecting the actual goods and services that can be bought.

Inflation Rate

The measure of inflation through the rising cost of goods and services, which diminishes the power of currency.

Nominal Wage

The wage earned by an employee, expressed in current currency terms, without adjustment for inflation or changes in purchasing power.

Efficiency Wage

A wage set above the market equilibrium by employers in an effort to enhance productivity, attract higher quality employees, and reduce turnover.