Below Is a List of Financial Assets

question 42

Multiple Choice

Below is a list of financial assets:
1.Certificates of deposit
2.Notice deposits (savings accounts)
3.Currency (coins and paper money)
4.Demand deposits (chequing accounts)
5.Government securities
6.Gold certificates
-Refer to the information above to answer this question.Which item(s) is included in the M3 definition of money?

• A)Items 1,2,3 and 4.
• B)Items 1,2,3,4 and 5.
• C)Items 1,3,4 and 6.
• D)All six of the items listed.

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Definitions:

Real Value

The value of an object, service, or currency adjusted for inflation, representing its true purchasing power.

Nominal Price

The price of a good or service in current monetary terms, without adjusting for inflation or deflation.

Microeconomic Analysis

The study of economic behavior of individuals, households and firms, focusing on the patterns of supply and demand and the price formation in markets.

Environmental Policy

Regulations and practices aimed at protecting the environment from harmful effects of human activities.