M3 is approximately equal to which of the following?
A) Narrow money.
B) Fiat money.
C) High- powered money.
D) Near money.
E) Broad money.

Question

Quizplus · Accepted Answer

M3 is a measure of broad money, which includes all types of money in circulation, including cash, checking accounts, savings accounts, and other time deposits. Narrow money (A) includes only the most liquid forms of money, such as cash and checking accounts. Fiat money (B) refers to currency that is not backed by a commodity, such as gold, but is instead supported by government decree. High-powered money (C) is a measure of the monetary base, including notes and coins in circulation and commercial bank reserves held at the central bank. Near money (D) are financial instruments that can be easily converted into cash, such as savings accounts or money market funds, but are not considered to be as liquid as narrow money.

M3 Is Approximately Equal to Which of the Following