The Largest Monetary Aggregate Is

question 228

Multiple Choice

The largest monetary aggregate is:

• A)M1, because it contains all of the currency in circulation.
• B)M2, because it contains currency in circulation, all bank deposits, other deposits, and deposit-like assets.
• C)the reserves in the vaults of Federal Reserve banks, because they are the money multiplier.
• D)the total volume of stocks and bonds, because they store most of the national wealth.

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Definitions:

Concurrent Conditions

In a contract, terms under which each party’s performance is conditioned on the performance of the other; occur only when the parties are required to perform for each other simultaneously.

Extrinsic Rewards

Rewards provided by an external source, such as money, grades, or praise, which can motivate behavior that might not occur otherwise.

Intrinsic Rewards

Motivational rewards that are internal to the individual, such as personal satisfaction, a sense of achievement, or a feeling of fulfillment.

Valence Rewards

Refers to the desirability of the reward outcomes, according to the expectancy theory, influencing the motivation of individuals.