Refer to the Accompanying Table

question 117

Multiple Choice

$$\begin{array} { | l | c | } \hline { \text { Item } } & \text { Billions of Dollars } \\\hline \text { Checkable Deposits } & \$ 597 \\\hline \text { Small Time Deposits } & 818 \\\hline \text { Currency } & 639 \\\hline \text { Money-Market Mutual Funds Held by Businesses } & 1,045 \\\hline \text { Savings Deposits, Including Money-Market Deposit Accounts } & 2,866 \\\hline \text { Money-Market Mutual Funds Held by Individuals } & 965 \\\hline\end{array}$$ Refer to the accompanying table. The value of the money included in M2 but not counted in M1 is

• A) $4,649 billion.
• B) $818 billion.
• C) $2,866 billion.
• D) $5,694 billion.

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Definitions:

Market Price

The market price at which you can currently buy or sell an asset or service.

Signaling Theory

A concept in economics and finance suggesting that one party credibly conveys some information about itself to another party through a signal or action.

Stock Price Decrease

A decline in the market price of a company's shares, often reflecting changes in the company's financial health, market conditions, or investor perceptions.

Dividend Increases

The raising of the dividend amount paid to shareholders by a company, typically indicative of the company’s growing profits or cash reserves.