The Federal Reserve Reports on Two Main Monetary Aggregates

question 68

Multiple Choice

The Federal Reserve reports on two main monetary aggregates:

• A) M2 and total debt.
• B) M1 and currency held by banks.
• C) M1 and M2.
• D) M1 and total stock purchases.

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Definitions:

Taxable Income

The amount of income that is subject to tax, after all deductions and exemptions are taken into account.

Intervals

Periods of time between events; in finance, it may refer to the frequency with which interest is applied or compounded.

Income Tax

Taxes that are based on the amount of taxable income that you earn.

Earned Income

Income derived from active participation in a business or trade, typically including wages, salaries, commissions, and tips.