Which of the Following Statements Best Summarizes the Difference Between

question 119

Multiple Choice

Which of the following statements best summarizes the difference between M-1 and M-2?

• A) The M-1 definition of the money supply includes only domestic currencies while the M-2 definition includes foreign currencies.
• B) The M-1 definition consists of hard currencies which are backed by gold and silver, while M-2 consists of soft currencies which are not backed by gold and silver.
• C) The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
• D) The M-1 money supply consists only of the currency (coins and paper money) that circulates in our economy, while the M-2 includes traveler's checks and funds in demand deposits.

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Definitions:

Duress

The threat of injury or imprisonment for the purpose of requiring another to enter into a contract or carry out some act.

Undue Influence

A legal term that refers to a situation where an individual is able to influence another person's decisions due to the power dynamic between them, often leading to unfair outcomes.

Fraudulent Misrepresentation

Fraudulent misrepresentation is a false statement made by one party to another, with the intent to deceive and induce the other party to act, resulting in harm.

Undue Influence

An illegitimate power exercised by one person over another in order to induce the latter to make a decision or a legal transaction that greatly benefits the former.