The Distinction Between M1 and M2 Is Based on

question 106

Multiple Choice

The distinction between M1 and M2 is based on

• A) portability-the ease with which an asset can be moved.
• B) divisibility-the ease with which an asset can be used to make smaller payments.
• C) liquidity-the ease with which an asset can be converted into cash.
• D) storability-how long an asset will retain its value.

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Definitions:

Fair Trade

A social movement and market-based approach that aims to help producers in developing countries achieve better trading conditions and promote sustainability.

Free Trade

International trading practices characterized by minimal governmental intervention regarding tariffs, allowing for the unobstructed exchange of goods and services.

General Agreement on Trade and Tariffs

An international trade agreement signed in 1947, aimed at reducing tariffs and other trade barriers to promote global economic exchange.

Opportunity Cost

The highest-valued alternative forgone as a result of making a decision to pursue a certain course of action.