39) Which of the following is NOT a component of M1? A) currency B) demand deposits C) travelers checks D) savings deposits 40) M2 consists of A) M1 plus travelers checks, credit cards and money market mutual funds. B) M1 plus Federal Reserve Notes and credit card line of credit. C) M1 plus demand deposits, certificates of deposit and savings deposits. D) M1 plus savings deposits, short term deposits and money market funds. 41) Suppose the M2 for the United States was $7,000 in 2009. Which of the following could be the M1 for the United States in 2009? A) $5,000 B) $7,500 C) $10,000 D) $14,000
Answer 1
Q39
Answer
Variant D
M1=travel expenses + cash deposits + currency
Savings deposits are part of M2
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Q40
Answer
Variant D
M2=M1+savings deposits+time deposits+mutual
funds
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Q42
Answer
Variant A
M1