Which One of the Following Is Part of the M2

question 48

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:

Utility

The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).

Costly Temptations

Unnecessary expenses or indulgences that can detract from long-term financial goals and stability.

Altruistic Behaviors

Acts motivated by the intention to help or benefit another individual or group of individuals without expectation of benefit for oneself.

Impulse Buying

The act of purchasing items on the spur of the moment without premeditation, often triggered by emotions or external stimuli.