Bank Reserves Are

question 80

Multiple Choice

Bank reserves are:

• A) not part of M1 or M2.
• B) part of M2 but not M1.
• C) M1 plus time deposits.
• D) part of M1 but not M2.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market stability.

Demand Decrease

A downward shift in the demand curve for a product, indicating that consumers now desire less of it at every price.

Supply Increase

A rise in the quantity of a product or service that is available for purchase, which can affect market prices and demand levels.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market equilibrium.