Which of the following correctly describes the difference between M1 and M2?
a. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver.
b. M1 is made up of currency, traveler's checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits, small-denomination time deposits, and money market mutual funds.
c. M1 is limited to currency, whereas M2 contains M1 plus travelers checks and money in checkable accounts.
d. M1 includes currency and traveler's checks, whereas M2 contains M1 plus money in checking accounts.
b
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In the national income accounts, the purchase of a new house counts as
A) consumption expenditure. B) investment. C) a transfer. D) an addition to inventory.
If marginal product is a constant what can we conclude about the shape of the average product function and why?
What will be an ideal response?