The distinction between M1 and M2 is based on
a. portability-the ease with which an asset can be moved.
b. divisibility-the ease with which an asset can be used to make smaller payments.
c. liquidity-the ease with which an asset can be converted into cash.
d. storability-how long an asset will retain its value.
c
You might also like to view...
Economics examines the options open to households and business firms, but ignores the options of governments and entire societies
a. True b. False Indicate whether the statement is true or false
If one includes in-kind income in the calculation, the
a. official poverty rate becomes meaningless. b. incidence of poverty actually increases. c. poverty rate is unchanged. d. fraction of the population in poverty drops.
The foreign holdings of U.S. dollars
a. reduce the living standards of Americans. b. are not included in the M1 money supply. c. account for approximately half of all U.S. currency issued by the Fed. d. are hard to explain since the dollar is not legal tender outside the United States.
Given the information in the table below, calculate (a) the concentration ratio; and (b) the Herfindahl-Hirschman index.
