Question

This important system of measurement includes: coins and paper bills, money that is available by writing...

This important system of measurement includes: coins and paper bills, money that is available by writing checks, and money held in traveler's checks--that is, money that can be accessed quickly and easily is called?

a.

M-1
b.

M-2
c.

Money Supply
d.

Federal Reserve Funds
e.

Actually, all of the given choices
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Homework Answers

Answer #1

M1 is the measurement of money supply which includes currency coins, notes, demand deposits and other deposits.

M2 is the measurement of money supply which includes M1 and saving deposites with post office

Money supply refers to the total money held by public in an economy

Federal Reserve Funds are the funds required to maintain the reserves requirements of banks

So the measurement which includes coins, paper bills, money available with writing checks is M1.

So option a is correct

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