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:

Correlation Coefficient

A statistical measure that quantifies the degree of relationship or association between two variables.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Difference

The result of subtracting one quantity from another, often used to compare or measure changes.

Significant Correlation

A relationship between two variables where changes in one variable are associated with changes in the other, and this association is statistically significant.