The Difference Between M1 and M2 Is That

question 192

Multiple Choice

The difference between M1 and M2 is that

• A)the former includes time deposits.
• B)the latter includes small-denominated time deposits, noncheckable savings accounts, money market deposit accounts, and money market mutual fund balances.
• C)the latter includes negotiable government bonds.
• D)the latter includes cash held by commercial banks and the U.S.Treasury.

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Definitions:

Federal Bankruptcy Exemptions

Legal provisions that allow individuals filing for bankruptcy to retain certain assets and properties from creditor claims under federal law.

Motor Vehicle Exemption

A provision in bankruptcy law that allows an individual to keep a vehicle up to a certain value as exempt from seizure by creditors.

Federal Bankruptcy Exemptions

Provisions allowing an individual to exempt certain types of property from the bankruptcy estate, thus protecting them from being seized to pay off creditors under federal bankruptcy law.

Liquidation

The process of closing a business and distributing its assets to claimants, typically occurring when a company is insolvent.