A Branch of the U

question 31

Multiple Choice

A branch of the U.S. Treasury Department, called the ________, administers the federal tax system.

• A) U.S. Department of Tax
• B) Internal Revenue Service
• C) U.S. Tax Authority
• D) U.S. Department of Collection

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Definitions:

M2

M1 plus savings deposits, small-denomination time deposits, and money market mutual funds.

M3

M2 plus large-denomination time deposits.

M1

A category of the money supply that includes physical currency and coins, demand deposits, traveler’s checks, and other checkable deposits.

M2

A measure of the money supply that includes cash, checking deposits, and easily convertible near money.