Which of the Following Is Included in M2, but Not

question 262

Multiple Choice

Which of the following is included in M2, but not included in M1?

• A) currency held outside banks
• B) travelers checks
• C) demand deposits
• D) savings accounts

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Definitions:

Excise Tax

A tax imposed on the sale or manufacture of specific goods, such as alcohol and tobacco, within a country.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in price.

Inelastic Supply

Describes a situation where the quantity supplied of a good changes by a smaller percentage than the percentage change in its price.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for public purposes.