Traveler's Checks Are Included in

question 2

Multiple Choice

Traveler's checks are included in

• A) M1 only.
• B) M2 only.
• C) both M1 and M2.
• D) neither M1 nor M2.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Deflation

A sustained decrease in the price level.

Growth

An increase in the economic capacity of a country to produce goods and services, compared from one period of time to another.