M2 Includes M1 Plus

question 130

Multiple Choice

M2 includes M1 plus

• A)currency in circulation,checking account deposits in banks,and holdings of traveler's checks.
• B)savings account balances,money market deposit accounts in banks,small-denomination time deposits,and noninstitutional money market fund shares.
• C)checking account deposits,large-denomination time deposits,and noninstitutional money market fund shares.
• D)currency in circulation,savings account balances,and small-denomination time deposits.

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, above which it cannot rise, often set by government.

Shortage

A market condition in which the demand for a product exceeds its supply at a particular price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to buy.

Living Wage

A wage level that is high enough to maintain a normal standard of living.