What are the official measures of money? Are all the measures really money?
What will be an ideal response?
The official measures of money are M1 (the sum of currency, traveler's checks, and checking deposits owned by individuals and businesses) and M2 (the sum of M1, savings deposits, time deposits, and money market mutual funds and other deposits). All of the components of M1 are truly money because all the components serve as a means of payment. Some of the components of M2 are not truly money because they are not a means of payment. (For instance, funds at money market mutual funds cannot be used as a means of payment for small purchases.) But all of these "non-money" assets are highly liquid so they are operationally similar to money.
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The Fed's policy is determined by the
A) Federal Open Market Committee. B) Executive Council to the Governor. C) Regional Federal Reserve Banks. D) Board of Governors. E) Federal Monetary Policy Committee.
A federal government surplus is said to exist in the event that ________
A) federal outlays are greater than federal revenues B) federal outlays are equal to federal revenues C) federal outlays are less than federal revenues D) any of the above conditions exists
Refer to the above figure. If real disposable income is $30,000, saving is
A) $0. B) $4000. C) $5000. D) $6000.
Minimum-wage laws dictate the lowest wage that firms may pay workers
a. True b. False Indicate whether the statement is true or false