The Distinction Between M1 and M2 Has Blurred Over Time

question 106

Multiple Choice

The distinction between M1 and M2 has blurred over time because

• A)M1 is now larger than M2
• B)depositors can transfer funds between accounts so easily
• C)the Federal Reserve has defined them less precisely
• D)M1 is becoming less liquid
• E)banks are offering time deposits

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Definitions:

Instrumental Values

Core values that dictate how we behave in order to achieve our goals, such as honesty and ambition.

Tangible Values

The measurable and physical worth of an asset, product, or property, which can be quantitatively assessed or directly experienced.

Intangible Values

Non-material benefits or qualities that are valued but not physically touchable, such as reputation, brand value, or human capital.

Corporate Culture

The beliefs, behaviors, values, and symbols that are accepted generally by members within an organization.