Question

Question 2 4 pts Which of the following is part of the definition of M1? Gold Savings Accounts Checking Accounts Currency at
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:- saving account will be the part of the definition of M1

Money Supply M1 or Narrow Money (M1);- It is a narrow measure of money supply. It consists of following items

M1= C+DD+OD

where, C=currency with the public

DD= Demand deposits with the public in the commercial banks and cooperative banks

OD= Other deposits held by the public with central bank

Add a comment
Know the answer?
Add Answer to:
Question 2 4 pts Which of the following is part of the definition of M1? Gold...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Do federal gold reserves count as M1 money? A. No, gold is not part of M1...

    Do federal gold reserves count as M1 money? A. No, gold is not part of M1 money B. No, but gold is included in M2 money C. Yes, gold is counted as part of checkable deposits D. Yes, gold is counted as part of currency

  • 1.) Gold, silver, and furs, when used as money, are referred to as fiat money precious...

    1.) Gold, silver, and furs, when used as money, are referred to as fiat money precious money paper currency commodity money exchange money 2.) The money supply is considered to be M1. M1 consists of what? currency + checking account balances + saving account balances currency + checking account balances + travelers' checks currency + checking account balances + credit cards currency + credit cards + certificates of deposit currency only 3.) The main purpose of financial intermediaries is that...

  • Gold, silver, and furs, when used as money, are referred to as    a- fiat money b-precious...

    Gold, silver, and furs, when used as money, are referred to as    a- fiat money b-precious money c-paper currency d-commodity money The money supply is considered to be M1. M1 consists of what? a-currency + checking account balances + saving account balances    b-currency + checking account balances + travelers' checks    c-currency + checking account balances + credit cards    d-currency + credit cards + certificates of deposit    e-currency only   The main purpose of financial intermediaries is that a-the process of finding...

  • Which of the following is included as part of the M1 money supply? Multiple Choice $200,000...

    Which of the following is included as part of the M1 money supply? Multiple Choice $200,000 balance in the checking account of Main Street Trading Corp. $200,000 in reserves held by Main Street Commercial Bank in its vaults $2 million balance in the checking account of the U.S. Treasury $200 million in the vaults of the Federal Reserve Banks

  • Which of the following is part of the M2 definition of the money supply, but not...

    Which of the following is part of the M2 definition of the money supply, but not part of M1?a. Checkable depositsb. Currency held in banksc. Currency in circulationd. Money market mutual fund shares

  • Determine if the following changes affect M1 and/or M2 and which way: a) There is a...

    Determine if the following changes affect M1 and/or M2 and which way: a) There is a decrease in total savings deposits in the economy b) Household shift some of their savings from money market deposits to savings deposits c) Households deposit some of their currency holding into checking deposits. d) Households convert some of their time deposits into currency.

  • M1 and M2 are two definiions of money supply. Determine if the items listed are included...

    M1 and M2 are two definiions of money supply. Determine if the items listed are included in the money supply under each of these definitions and place them in the appropriate category. M1 only M2 only M1 and M2 Neither M1 nor M2 Answer Bank credit cards balances in checking accounts traveler's checks balances in savings accounts common stock currency certificates of deposit gold money market account balances

  • 5. Determine if the following changes affect M1 and/or M2 and which way: a) There is...

    5. Determine if the following changes affect M1 and/or M2 and which way: a) There is a decrease in total savings deposits in the economy b) Household shift some of their savings from money market deposits to savings deposits c) Households deposit some of their currency holding into checking deposits. d) Households convert some of their time deposits into currency.

  • Here are several facts which may be necessary to calculate the money supply (M1) for the...

    Here are several facts which may be necessary to calculate the money supply (M1) for the U.S. as of May 1st. 2019: 1. Currency $1.5 trillion. 2. Checking Accounts at U.S. Banks $2.5 trillion 3. Credit Card balances $3 trillion 4. Savings Accounts $5 trillion Do the following as your answer: A. Calculate M1 B. Write a sentence comparing the M1 you calculate to m1 of $3.1 trillion in February 2016. C. Write a second sentence indicating how the FED...

  • 5. Determine if the following changes affect M1 and/or M2 and which way: a) There is a decrease in total savings deposit...

    5. Determine if the following changes affect M1 and/or M2 and which way: a) There is a decrease in total savings deposits in the economy b) Household shift some of their savings from money market deposits to savings deposits c) Households deposit some of their currency holding into checking deposits. d) Households convert some of their time deposits into currency.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT