The components of M2 that are not also in M1:
A) sum to an amount that is smaller than the sum of the components of M1.
B) pay lower rates of interest than do the components of M1.
C) are not usable for making payments.
D) are usable for making payments, but at a greater cost or inconvenience than currency or checks.
Correct Answer:
Verified
Q29: When a bank makes a loan by
Q30: Bank reserves are:
A)currency and customer checking deposits.
B)currency,
Q31: Banks hold reserves:
A)to earn interest.
B)to increase profits.
C)only
Q32: Based on the following information, the
Q33: Assets of the commercial banking system include:
A)reserves
Q35: Money market mutual funds are _ the
Q36: If the Central Bank of Macroland puts
Q37: The amount of money in the United
Q38: M1 differs from M2 in that:
A)M1 includes
Q39: 100 percent reserve banking refers to a
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