MNB3701 chapter 16 assignment 2
Which of the following is included in M2 but not M1?
A.Currency
B.Money market deposit accounts in banks
C.Checking account deposits at banks
D.Traveler's checks - answer☑️✔️..B
The Federal Reserve uses two definitions of the money supply, M1 and M2, because
A.M1 is a narrow definition focusing more on liquidity, whereas M2 is a broader definition of
the money supply.
B.M2 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the
money supply.
C.M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of
value function.
D.M2 is also known as cash and cash equivalent, whereas M1 represents the standard of
deferred payment function. - answer☑️✔️..A
Distinguish among money, income, and wealth.
A.A person's money is the currency held and the earning from work, income is equal to the
bank balance and wealth is equal to the profit from investment.
B.A person's money is the currency in the pocket, income is the earning and wealth is equal to
asset value.
C.A person's money is the currency plus all bank accounts owned, income is equal to the
earning from work and wealth is equal to the profit from investment.
, D.A person's money is the currency held and the checking account balance, income is the
earning and wealth is equal to value of assets minus all debts. - answer☑️✔️..D
The central bank of a country controls the money supply, which equals the currency held by
A.banks.
B.the public plus their checking acount balances.
C.the public plus their checking and saving account balances.
D.the public. - answer☑️✔️..B
Look carefully at the following list.
a. The coins in your pocket.
b. The funds in your checking account.
c. The funds in your savings account.
d. The traveler's check that you have left over from a trip.
e. Your Citibank Platinum MasterCard.
Which of the things above are NOT included in the M1LOADING... definition of the money
supply?
A.b & e
B.c & e
C.d & e
D.a & b - answer☑️✔️..B
Which of the following is included in M2 but not M1?
A.Currency
B.Money market deposit accounts in banks
C.Checking account deposits at banks
D.Traveler's checks - answer☑️✔️..B
The Federal Reserve uses two definitions of the money supply, M1 and M2, because
A.M1 is a narrow definition focusing more on liquidity, whereas M2 is a broader definition of
the money supply.
B.M2 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the
money supply.
C.M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of
value function.
D.M2 is also known as cash and cash equivalent, whereas M1 represents the standard of
deferred payment function. - answer☑️✔️..A
Distinguish among money, income, and wealth.
A.A person's money is the currency held and the earning from work, income is equal to the
bank balance and wealth is equal to the profit from investment.
B.A person's money is the currency in the pocket, income is the earning and wealth is equal to
asset value.
C.A person's money is the currency plus all bank accounts owned, income is equal to the
earning from work and wealth is equal to the profit from investment.
, D.A person's money is the currency held and the checking account balance, income is the
earning and wealth is equal to value of assets minus all debts. - answer☑️✔️..D
The central bank of a country controls the money supply, which equals the currency held by
A.banks.
B.the public plus their checking acount balances.
C.the public plus their checking and saving account balances.
D.the public. - answer☑️✔️..B
Look carefully at the following list.
a. The coins in your pocket.
b. The funds in your checking account.
c. The funds in your savings account.
d. The traveler's check that you have left over from a trip.
e. Your Citibank Platinum MasterCard.
Which of the things above are NOT included in the M1LOADING... definition of the money
supply?
A.b & e
B.c & e
C.d & e
D.a & b - answer☑️✔️..B
