The M1 Definition of the Money Supply Includes Currency

question 83

Multiple Choice

The M1 definition of the money supply includes currency,

• A) checkable deposits, and savings accounts.
• B) checkable deposits, and credit cards.
• C) checkable deposits, and debit cards.
• D) and checkable deposits.

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Definitions:

Price Rise

An increase in the cost of goods or services, typically signifying inflation or market changes.

Budget Line

A graphical representation that shows all possible combinations of two goods that can be purchased with a given income and prices.

Commodity 1

A generic term for a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Commodity 2

Typically refers to a basic good used in commerce that is interchangeable with other goods of the same type.