The M2 money supply is defined as

A. M1 plus savings accounts.
B. Currency held by the public plus transactions accounts.
C. M1 plus balances in most savings accounts and money market mutual funds.
D. Most balances held in savings accounts and money market mutual funds.


Answer: C

Economics

You might also like to view...

The demand for chocolate is perfectly inelastic in Foodieland. If a tax is imposed on chocolate, ________

A) the deadweight loss due to taxation will be high B) the deadweight loss due to taxation will be one C) consumers will stop consuming chocolate D) the tax burden will fall entirely on buyers

Economics

In the attempt to use deficits to fight the Great Recession, what was the size of the federal government's "stimulus" plan of 2009?

A) $7.87 billion B) $78.7 billion C) $787 billion D) $7.87 trillion

Economics

The Smoot-Hawley Act was enacted in

A) 1980. B) 2000. C) 1930. D) 2010.

Economics

"Fluctuations in exchange rates, other things remaining the same, creates a situation in which money buys the same amount of goods and services in different currencies

" What does the previous statement describe? Will these fluctuations occur in the short run or the long run?

Economics