Which Approach to Measuring Money Focuses on the Value of Currency

question 457

Multiple Choice

Which approach to measuring money focuses on the value of currency, transaction deposits, and travelers checks?

• A) the transactions approach
• B) the liquidity approach
• C) near moneys
• D) M2

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Definitions:

Obligation

A duty or commitment to do something or to pay a debt, often legally binding.

Sell

The act of transferring ownership of a product or service from one party to another in exchange for money or other compensation.

Option Contract

A contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a particular date.

Option Premium

The price paid for the right to buy or sell an underlying financial instrument at a specified strike price until the option expires.