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Which of the Following Is False

Question 64

Multiple Choice

Which of the following is false?


A) Currency is money, but money is more than simply currency.
B) M1 is a component of M2.
C) Federal Reserve notes make up about 99 percent of the paper money in circulation.
D) Credit cards are money since they are widely accepted for purposes of exchange.
E) Money reduces the transaction costs of making exchanges.

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