Podcast
Questions and Answers
What is the primary difference between M1 and M2 money supply?
What is the primary difference between M1 and M2 money supply?
- M2 includes savings deposits, while M1 does not
- M2 includes traveler's checks, while M1 does not
- M2 includes money market funds, while M1 does not (correct)
- M2 includes coins and currency in circulation, while M1 does not
Which of the following is not included in the M1 money supply definition?
Which of the following is not included in the M1 money supply definition?
- Currency in circulation
- Savings deposits (correct)
- Coins held by the public
- Checkable deposits
Why are checkable deposits also known as demand deposits?
Why are checkable deposits also known as demand deposits?
- Because the bank must give the deposit holder their money on demand when they write a check or use a debit card (correct)
- Because the deposit holder can demand the bank to increase the interest rate on the checkable deposit
- Because the deposit holder can demand the bank to convert the checkable deposit to currency
- Because the deposit holder can demand the bank to transfer the funds to another account
Which of the following is not included in the M1 money supply definition?
Which of the following is not included in the M1 money supply definition?
What is the relationship between M1 and M2 money supply?
What is the relationship between M1 and M2 money supply?
Which of the following is included in the M2 money supply definition but not the M1 definition?
Which of the following is included in the M2 money supply definition but not the M1 definition?
What is the main difference between the money in M1 and the additional money in M2?
What is the main difference between the money in M1 and the additional money in M2?
Which of the following is NOT a component of M1 money?
Which of the following is NOT a component of M1 money?
Which of the following is the BEST definition of M2 money according to the text?
Which of the following is the BEST definition of M2 money according to the text?
How much larger was M2 compared to M1 in the United States at the end of November 2021?
How much larger was M2 compared to M1 in the United States at the end of November 2021?
Which of the following is true about the relationship between M1 and M2 according to the text?
Which of the following is true about the relationship between M1 and M2 according to the text?
What is the primary responsibility of the Federal Reserve System with respect to M1 and M2?
What is the primary responsibility of the Federal Reserve System with respect to M1 and M2?
Which of the following is NOT a component of M1 money supply?
Which of the following is NOT a component of M1 money supply?
What is the approximate total value of M1 money supply as per the data provided?
What is the approximate total value of M1 money supply as per the data provided?
Which of the following is a component of M2 but NOT M1?
Which of the following is a component of M2 but NOT M1?
According to the passage, how have changes in banking practices affected the distinction between M1 and M2?
According to the passage, how have changes in banking practices affected the distinction between M1 and M2?
Which of the following statements is true about the definition of money supply measures like M1 and M2?
Which of the following statements is true about the definition of money supply measures like M1 and M2?
Based on the data provided, what is the approximate total value of M2 money supply?
Based on the data provided, what is the approximate total value of M2 money supply?
