Frictional Unemployment Refers To

question 30

Multiple Choice

Frictional unemployment refers to:

• A) unemployment related to the ups and downs of the business cycle.
• B) workers who are between jobs.
• C) people who spend relatively long periods out of work.
• D) people who are out of work and have no job skills.

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Definitions:

Near-Monies

Assets that are easily convertible into cash but are not cash themselves, such as savings accounts and time deposits.

Time Deposits

Deposits that earn a fixed interest rate if held for the specified period, which can range from several months to several years; also called certificates of deposit.

Money Market Mutual Funds

Investment funds that invest in short-term debt securities, offering investors a high degree of liquidity and typically low risk.

M1 Money Supply

The measure of the most liquid components of the money supply, including currency in circulation and demand deposits in banks.