Which of the Following Is Included as Part of the M1

question 228

Multiple Choice

Which of the following is included as part of the M1 money supply?

• A) $200,000 balance in the checking account of Main Street Trading Corp.
• B) $200,000 in reserves held by Main Street Commercial Bank in its vaults
• C) $2 million balance in the checking account of the U.S. Treasury
• D) $200 million in the vaults of the Federal Reserve Banks

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Definitions:

National Convention

A meeting held every four years by political parties in the U.S. to nominate presidential and vice-presidential candidates.

Congress

The legislative branch of the United States federal government, consisting of two houses: the Senate and the House of Representatives.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was replaced by the U.S. Constitution in 1789 to form a stronger federal government.

Shays's Rebellion

A 1786-1787 uprising led by Daniel Shays and other Revolutionary War veterans in western Massachusetts, protesting against high taxes and economic injustices, which highlighted the need for a stronger national government.