Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) Currency is money,but money is more than just currency.
• B) M1 is a component of M2.
• C) Retail money market mutual funds are part of M2,but institutional money market mutual funds are not.
• D) Credit cards are money since they are widely accepted for purposes of exchange.
• E) Money reduces the transaction costs of making exchanges.

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Definitions:

Variable Costs

Costs that change in proportion to the activity or volume of business, such as materials and labor.

Total Costs

The complete cost of production of goods or services, which includes both fixed and variable costs.

Revenues

The total income generated by a company from its business activities, typically from the sale of goods and services before any expenses are deducted.

Total Variable Cost

The total variable cost is the sum of all variable expenses that change in proportion to the volume of output or production.