Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) Currency is money,but money is more than just currency.
• B) M1 is a component of M2.
• C) Retail money market mutual funds are part of M2,but institutional money market mutual funds are not.
• D) Credit cards are money since they are widely accepted for purposes of exchange.
• E) Money reduces the transaction costs of making exchanges.

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Definitions:

Total Profits

The financial gain obtained after subtracting total costs from total revenue over a period.

Marginal Revenue

The boost in income resulting from the sale of one more unit of a product or service.

Market Price

The existing value at which an asset or service might be acquired or disposed of on the open market.

Marginal Revenue

The incremental revenue procured by selling an extra unit of a product or service.