Which One of the Following Is Part of the M2

question 139

Multiple Choice

Which one of the following is part of the M2 definition of the money supply, but not part of M1?

• A) Checkable deposits.
• B) Currency held in banks.
• C) Currency in circulation.
• D) Small time deposits of less than $100,000.

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Definitions:

Auditing Firms

Companies specializing in examining and evaluating the accuracy of financial records and statements of a corporation or entity.

Financial Assets

Assets that derive value from a contractual promise or ownership right, including stocks, bonds, derivatives, and bank balances.

Consumption Timing

The decision-making process regarding when to spend money on goods and services, balancing current consumption against future needs.

Allocation Of Risk

Allocation of Risk involves distributing exposure to financial risks among various participants or financial instruments to manage potential losses more effectively.