The Beta of the Market

question 92

Multiple Choice

The beta of the market

• A) is greater than 1.
• B) is less than 1.
• C) is 1.
• D) cannot be determined.

---

Definitions:

M3

An indicator of the total money supply encompassing M2—which consists of cash, checking deposits, and readily convertible near money—along with substantial time deposits, institutional money market funds, and additional significant liquid assets.

M1

A segment of the money supply encompassing all tangible forms of money such as bills and coins, alongside demand deposits and additional liquid assets maintained by the central bank.

Demand for Money Schedule

A representation of the relationship between the quantity of money people wish to hold and the interest rate, other factors being constant.

Quantity of Money

The total amount of money in circulation or in existence within a particular economy.