The Designate M1 Measure of Money Consists of

question 227

Multiple Choice

The designate M1 measure of money consists of

• A) the most liquid types of money in the U.S. system.
• B) small time deposits only.
• C) credit cards and ATM cards.
• D) gold and gold coins.

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Definitions:

Market Rate

The prevailing price or cost of goods, services, or labor in a competitive market, determined by supply and demand forces.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by the yield on government bonds.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the central bank or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Annually

Pertaining to an occurrence, calculation, or payment that happens every year.