Why Has the Distinction Between M1 and M2 Been Blurred

question 19

Multiple Choice

Why has the distinction between M1 and M2 been blurred over time?  

• A) M1 is now larger than M2. 
• B) Depositors can transfer funds between accounts so easily. 
• C) M1 is becoming less liquid. 
• D) Banks are offering time deposits.

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Definitions:

Declaration of Rights

A document outlining the fundamental rights and freedoms that are guaranteed to a person or recognized by a legal system, such as the United States Bill of Rights.

British Resistance

The opposition and defiance demonstrated by British forces, government, and civilians during conflicts, most notably during World War II.

Galloway's Plan

A proposal by Joseph Galloway in 1774 aimed at maintaining the American colonies' allegiance to Great Britain by offering them greater autonomy within the empire.

John Adams

The second President of the United States (1797-1801), a Founding Father who played a leading role in the American Revolution and the drafting of the Declaration of Independence.