M1 Differs from M2 in That

question 107

Multiple Choice

M1 differs from M2 in that:

• A)M1 includes currency and balances held in checking accounts, which are not included in M2.
• B)M2 includes savings deposits, small-denomination time deposits, and money market mutual funds that are not included in M1.
• C)M1 is a broader measure of the money supply than M2.
• D)the assets in M2 are more liquid than the assets in M1.

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Definitions:

Behavior

The actions or reactions of an organism or system, usually in response to external stimuli, observable and measurable by others.

Frequency

In the context of waves, it refers to the number of cycles of a wave that pass a certain point in a given period of time, typically measured in Hertz (Hz).

Operant Conditioning

Operant Conditioning is a learning process in which the strength of a behavior is modified by reinforcement or punishment.

Generalization

The process of extending the application of a response to stimuli that are similar to the conditioned stimulus in classical conditioning.