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Multiple Choice please and thank you! M2 includes M1 and: a. long-term bonds. b. large time...

Multiple Choice please and thank you!

M2 includes M1 and:

a.

long-term bonds.

b.

large time deposits.

c.

gold reserves.

d.

savings accounts.

e.

overnight repurchase agreements.

The monetary base consists of:

a.

M1 plus M2.

b.

reserves and currency.

c.

gold reserves plus currency.

d.

a country’s holdings of foreign and domestic currencies.

e.

only M1.

The velocity of money is:

a.

how quickly money can be printed.

b.

how quickly individuals spend their incomes.

c.

the average number of times a dollar is used in a transaction per year.

d.

how many times individuals are paid per year.

e.

None of these answers is correct.

In the quantity equation, the value PtYt is:

a.

aggregate expenditure.

b.

real money.

c.

nominal GDP.

d.

the velocity of money.

e.

real GDP.

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Answer #1

Answer 1

d. savings account

Its a fact . Therefore rest of the options are incorrect .

Answer

b. reserves and currency.

Monetary base consist of currency in circulation and reserves. Rest of the options are wrong .

Answer

c. the average number of times a dollar is used in a transaction per year.

Velocity of money is the rate at which money is regulated in an economy .

Answer

c .nominal GDP

Its a fact . Therefore rest of the options are incorrect

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