Which of the Following Is Not a Component of M1

question 131

Multiple Choice

Which of the following is not a component of M1?

• A) currency held outside banks
• B) traveler's checks
• C) savings deposits
• D) checkable deposits

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Definitions:

Pure Monopoly

A market structure where a single seller controls the entire market for a product or service, with no close substitutes available.

Close Substitutes

Products or services that can easily replace each other in the eyes of the consumer, resulting in a high degree of interchangeability and competition.

Single Firm

A business or company that operates alone in its industry without competitors.

Purely Monopolistic

Characterizes a market scenario where one entity exclusively controls the entire market for a product or service, eliminating all direct competition.