Why Has M2 Grown More Quickly Than M1 in Recent

question 55

Multiple Choice

Why has M2 grown more quickly than M1 in recent decades?

• A) Currency in circulation has declined.
• B) People own more shares of stock than in the past.
• C) The amount of funds in CDs and money market mutual funds shares has grown faster than currency or checking deposits.
• D) Most people use debit cards instead of checking accounts.

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Definitions:

Strategically Minded

Having or showing the ability to develop and implement plans that ensure success or advantage, especially by long-term planning.

Corporate Strategy

The overarching strategy of an organization, defining its overall purpose, scope, and direction, and how it intends to create and capture value across different businesses and functions.

Implementing Strategy

The process of executing plans and actions to achieve strategic goals and objectives.

Lowest-Level Workers

Employees who hold the positions at the bottom tier of an organization's hierarchy, typically performing the most basic tasks.