Which of the Following Is Not a Component of the M1

question 32

Multiple Choice

Which of the following is not a component of the M1 money supply?

• A)Demand deposits.
• B)Large-denomination (more than $100)bills.
• C)Interest-earning checking deposits.
• D)Outstanding balances on credit cards.

---

Definitions:

Carrot-And-Stick

The carrot-and-stick approach is a motivational technique that combines the promise of reward (carrot) and the threat of punishment (stick) to influence behavior.

Income Redistribution

The transfer of income from some individuals to others by means of a social mechanism such as taxation, charity, welfare, public services, land reform, or monetary policies.

Black Americans

Individuals in the United States who have African ancestry; commonly referred to as African Americans.

Poor

This term refers to individuals or groups who lack sufficient financial resources to meet a basic standard of living.