The M2++ and M3 Definitions of the Money Supply Include

question 108

Multiple Choice

The M2++ and M3 definitions of the money supply include financial assets

• A)that serve the store-of-value function and are convertible into a medium of exchange.
• B)such as deposits at credit unions and caisses populaires.
• C)such as deposits at non-bank financial institutions.
• D)such as a credit card.
• E)such as a government Treasury bill.

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Definitions:

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Stock Dividends

Dividends paid to shareholders in the form of additional shares of stock instead of cash.

Contributed Capital

The total value of the cash and other assets received by a company from its shareholders in exchange for stock, also known as paid-in capital.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often paying fixed dividends.