The M2 measure of the money supply equals
A) M1 plus savings account balances plus small-denomination time deposits.
B) savings account balances plus small-denomination time deposits plus traveler's checks.
C) M1 plus savings account balances plus small-denomination time deposits plus noninstitutional money market fund shares.
D) savings account balances plus small-denomination time deposits plus noninstitutional money market fund shares.
C
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When a central bank buys foreign assets,
A) its holdings of foreign assets rise by the amount of the purchase, but the monetary base is unaffected. B) its holdings of foreign assets and the monetary base rise by the amount of the purchase. C) its holdings of foreign assets rise by the amount of the purchase, and the monetary base rises by the amount of the purchase times the money multiplier. D) the monetary base falls by the amount of the purchase.
The demand curve for Widgets is given by QD = 6000 - 2y - 200p + 30pG, where QD is the quantity of widgets demanded, y is the per capita income and pG is the price of Gizmos. An increase in per capita income will cause
A) demand shifts left. B) demand shifts right. C) demand increases. D) movement along the demand curve.
If the insurance company can successfully screen both Nadia and Samantha into appropriate contracts, it would earn
a. Between a zero and $200 loss b. Between zero and $200 c. $3500 loss d. $3500 gain
If one nation can produce greater quantities of a good than another nation, it has a(n) a. comparative advantage in producing that good
b. absolute advantage in producing that good. c. absolute advantage, but a comparative disadvantage in producing that good. d. comparative advantage, but an absolute disadvantage in producing that good.