M2 Refers To

question 98

Multiple Choice

M2 refers to:

• A) currency.
• B) currency plus total reserves held at the Fed.
• C) currency plus checkable deposits.
• D) currency,checkable deposits,savings deposits,money market mutual funds,and small-time deposits.

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Definitions:

Agency Relationship

A legal arrangement in which one party (the agent) acts on behalf of another (the principal) in dealings with third parties.

Fulfillment

The process of completing or carrying out a task, order, or obligation to its final conclusion.

Revocation

The act of recall or annulment of a decision or an offer that had been previously made.

Apparent Agency

A situation where a principal inadvertently leads a third party to reasonably believe that another individual has the authority to act as their agent, even if no such agency relationship actually exists.