M2 Includes M1 Plus All of the Following Except

question 42

Multiple Choice

M2 includes M1 plus all of the following except

• A) savings deposits.
• B) retail money market mutual funds.
• C) short-term U.S.government securities.
• D) small-denomination time deposits.

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Definitions:

Deep Depression

An extended period of significant decline in the economy, characterized by high unemployment, sharp decreases in output and trade, and widespread poverty.

Capacity Utilization Rate

A measure of how well an economy or a firm is using its productive capacity to manufacture goods or services.

Unemployment Rate

A gauge of the share of individuals in the labor pool who are not employed but are actively seeking a job.

Economy Operated

Refers to the manner in which a nation’s economic systems and policies are managed and function to produce goods and services.