Which of the following is not a component of m1?

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 the credit line on credit cards. C) M1 plus demand deposits, certificates of deposit, and saving deposits. D) M1 plus saving deposits, small time deposits, and money market mutual funds. 41) Suppose M2 for the US was $7,000 in 2009. Which of the following could be M1 for the US in 2009? A) $5,000 B) $7,500 C) $10,000 D) $14,000 39) Which associated with after just isn’t a factor of M1? A) money B) need deposits C) tourist’s checks D) cost savings build up 40) M2 is made of A) M1 plus tourist’s checks, charge cards, and cash market shared funds. B) M1 plus Federal Reserve records, and line of credit on charge cards. C) M1 plus need build up, certificates of deposit, and saving build up. D) M1 plus saving build up, little time build up, and cash market shared funds. 41) assume M2 the United States had been $7,000 during 2009. Which associated with following might be M1 the United States during 2009? A) $5,000 B) $7,500 C) $10,000 D) $14,000
M1=travelers cheeck +demand build up +currrency
saving build up is part of M2
funds
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funds
Q40
Solution
Choice A
M2=M1+saving build up+small time build up +money market shared
Q42
Q39
as M2==M1+saving build up+small time build up +money market shared
Solution

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Choice D
M2=$7000 then M1=5000

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