The M₂ Definition of the Money Supply Is Based on the Concept

question 129

Multiple Choice

The M₂ definition of the money supply is based on the concept that

• A)M₁ is a small number and should be increased in size.
• B)many types of deposits can be used as both payments and stores of value.
• C)checking deposits are used for payments, and therefore, not part of M₁.
• D)cash is not used for the majority of payments.

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Definitions:

Social Responsibility

The ethical framework suggesting that individuals or organizations have an obligation to act for the benefit of society at large.

Demand Legitimacy

The perceived appropriateness and justification of a demand or request made by stakeholders based on societal norms and values.

Stakeholders

Individuals or groups with an interest or concern in the success of an organization, project, or endeavor, including employees, customers, investors, and the community.

Operations

The day-to-day activities and processes undertaken by a business to produce goods or provide services efficiently and effectively.