Which of the Following Is Not a Part of M1

question 122

Multiple Choice

Which of the following is not a part of M1?

• A) Cash in the hands of the public.
• B) Demand deposits.
• C) Traveler's checks.
• D) Money market mutual fund (MMMF)balances.
• E) Corporate stocks.

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Definitions:

Government Transfers

Payments made by the government to individuals without the expectation of work or goods and services in return, like welfare or social security.

GDP

Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation).

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured using current prices without adjusting for inflation.