The M2 Measure of Money Consists of All the Assets

question 49

Multiple Choice

The M2 measure of money consists of all the assets in M1 plus assets that are

• A) usable in making payments but at a much lesser cost than currency or chequing accounts
• B) usable in making payments but at a much greater cost than currency or chequing accounts
• C) only denominated in foreign currency.
• D) taxed at different rates as mandated by Canadian banking laws.
• E) taxed at identical rates as mandated by Canadian banking laws.

---

Definitions:

Degree Program

A course of study at a college or university that leads to the attainment of a specific academic degree, such as a bachelor's or master's degree.

Foreign Tax Credit

A tax credit that allows taxpayers to offset income tax paid to foreign countries against their U.S. tax liability to avoid double taxation.

U.S. Income Tax

A charge imposed by the U.S. federal government on the yearly income of individuals, companies, trusts, and various legal bodies.

Foreign Government

It refers to the government of a country other than one's own.