Excess Liquidity Is Defined as

question 128

Multiple Choice

Excess liquidity is defined as

• A) the year-to year percentage change in the M2 money supply less the year-to-year percentage change in the nominal GNP.
• B) the growth rate in the M2 money supply less the growth rate in the M1 money supply.
• C) the year-to-year percentage change in the M1 money supply less the year-to-year percentage.
• D) the year-to-year percentage change in the "real" GNP less the year-to-year percentage change in the nominal GNP.
• E) None of these are correct.

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Definitions:

Force Majeure Clause

A contract provision that frees parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.

Hail

Frozen precipitation in the form of balls or irregular lumps of ice, often occurring during strong thunderstorms.

Monetary Compensation

Financial payment provided to an individual for services rendered, such as a salary, wages, or benefits.

Breach of Contract

Not meeting any provision of a contract, be it written or spoken, without an acceptable legal justification.