Which of the Following Statements About M1 and M2 Is

question 75

Multiple Choice

Which of the following statements about M1 and M2 is not true?

• A)Transaction accounts are part of M1.
• B)M2 is more liquid than M1.
• C)M2 is larger than M1.
• D)Transaction accounts are part of M2.

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Definitions:

Financial Assets

Financial assets are intangible assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and the rights to receive cash in the future.

Claims On Real Assets

Financial securities or other types of financial instruments that confer ownership or a right to a portion of the value of tangible assets.

Well-Developed Economy

A country's economic state characterized by strong industrial, service, and financial sectors, stable political systems, high standards of living, and advanced technological infrastructure.

Investment Assets

Tangible or intangible items that individuals, companies, or funds buy or invest in with the expectation of generating future income or profit.