The Measure of the Money Stock Called M1 Includes

question 95

Multiple Choice

The measure of the money stock called M1 includes

• A)wealth held by people in their checking accounts.
• B)wealth held by people in their savings accounts.
• C)wealth held by people in money market mutual funds.
• D)everything that is included in M2 plus some additional items.

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Definitions:

Primary Market

The primary market is where securities are created and sold for the first time, involving direct transactions between issuers and investors.

Security Issues

The process of offering new securities to the market, including initial public offerings (IPOs) and bond issuances.

Auction Market

A market where buyers and sellers enter competitive bids simultaneously; stock exchanges are an example, where prices are determined by the highest bid and lowest ask.

New York Stock Exchange

One of the largest stock exchanges in the world, located in New York City, where stocks of publicly held companies are bought and sold.