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Why Are Notice Deposits Not Included in the M1 Definition

Question 18

Multiple Choice

Why are notice deposits not included in the M1 definition of money?


A) Because the real value of notice deposits is zero.
B) Because the value of notice deposits is much less stable than that of demand deposits and currency.
C) Because they do not have direct or immediate access to goods and services.
D) Because they are not recognized in law as legal tender.
E) Because in terms of volume they are much less than demand deposits.

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