One difference between the assets included in M1 and those added to calculate M2 is that items in M1 are
A) better stores of value than those added to compute M2.
B) more liquid than those added to compute M2.
C) less liquid than those added to compute M2.
D) larger than those added to compute M2.
Correct Answer:
Verified
Q80: Fiat money is
A)always backed by gold or
Q81: Liquid assets that are close substitutes for
Q82: The new $20 bills are being introduced
Q83: The M1 money supply is composed of
A)currency,
Q84: Price levels rarely remain the same.This implies
Q86: The narrowest definition of the money supply
Q87: Commodity money is
A)backed by gold.
B)money with intrinsic
Q88: One conceptual problem in assigning assets to
Q89: Fiat money has value because it
A)is backed
Q90: Although a variety of commodities have been
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