The Table Given Below Shows the Components of Money Supply

question 124

Multiple Choice

The table given below shows the components of money supply in an economy.
Table 12.1
$\begin{array}{|l|c|}\hline {\text { Money Component }} & \text { Amount (in millions) } \\\hline \text { Currency } & \$ 550 \\\text { Travelers' Checks } & \$ 20 \\\text { Savings Deposits } & \$ 180 \\\text { NOW Accounts } & \$ 185 \\\text { Small-Denomination Time Deposits } & \$ 620 \\\text { Retail Money Market Mutual Funds } & \$ 605 \\\text { ATS Accounts } & \$ 180 \\\text { Demand Deposits } & \$ 210 \\\hline\end{array}$
-Refer to Table 12.1 and calculate the value of M1.

• A) $550 million
• B) $570 million
• C) $780 million
• D) $1,125 million
• E) $1,145 million

Distinguish between demand-oriented, cost-oriented, profit-oriented, and competition-oriented pricing approaches.

Analyze the role of pricing in positioning a product in the market (e.g., high-quality image).

Understand the concept of price sensitivity and how it affects the success of certain pricing strategies.

Appreciate the psychological aspects of pricing, such as odd-even pricing, and their effects on consumer behavior.

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Definitions:

Flash Flood

A local and sudden flood of short duration, such as that which may follow a brief but heavy rainfall.

Global Warming

Increasing global atmospheric and oceanic temperatures as measured or inferred from some point in the past to the present.

Lithosphere

The rigid outer layer of the earth, including the crust and upper mantle, which is divided into tectonic plates.

Biosphere

The global sum of all ecosystems, including all living organisms and their relationships to each other and to their environments.