Ask Question
BusinessBusiness
17 January, 23:16

Which of the following statements about M1 and M2 is true? Group of answer choices Savings deposits are part of M2. Demand deposits are not part of M1. M1 is larger than M2. M2 is more liquid than M1.

+5
Answers (1)
  1. 18 January, 01:37
    0
    The correct answer is A

    Explanation:

    M1 and M2 money supply is the aggregate value of the money available in the economy at the time. M1 money supply comprise of the money that are liquid in nature like the checks of traveler, demand deposits as well as cash.

    Whereas the M2 money supply involves those which are less liquid in nature and involve or comprise of M1 in addition to time and savings deposits, money market funds and certificate of deposits.

    Therefore, the statement which is true is that the M2 involves the savings deposits.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following statements about M1 and M2 is true? Group of answer choices Savings deposits are part of M2. Demand deposits are not ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following does an employer violate when it terminates an employee for refusing to do something unethical, unsafe, and illegal? a. Public policy b. Procedural justice c. Open-door policy d. None of these
Answers (1)
In its annual income statement, Fox Co. reported incomebefore income taxes of $300,000. Foxestimated that, because of permanent differences, taxable income would be $280,000, and during the year Fox made estimated tax payments of $50,000, which were
Answers (1)
Which is a determinant of the price elasticity of demand for most products?
Answers (1)
List the factors that influence the price of labor a. b. c. d. e. f.
Answers (1)
Identify a true statement about the economic model of corporate social responsibility (CSR). a. The economic model of corporate social responsibility (CSR) holds that businesses should integrate social goals and economic goals. b.
Answers (1)
New Questions in Business
In economics, what is logrolling?
Answers (1)
In year 1 the CPI is 140, and in year 2 the CPI is 154. From year 1 to year 2, Maria's salary rises from $43,000 to $48,000, and Daisy's salary rises from $65,000 to $70,000. Who is "more than keeping up with inflation"?
Answers (2)
Under a perpetual inventory system: a) purchases on account are debited to Purchases. b) purchase returns are debited to Purchase Returns and Allowances. c) freight costs are debited to Freight-Out. d) purchases on account are debited to Inventory.
Answers (1)
Prepare various types of budgets
Answers (1)
On October 1, 20X3, Green Corporation paid $450,000 for all of Yellow Company's outstanding common stock.
Answers (1)
Home » Business » Which of the following statements about M1 and M2 is true? Group of answer choices Savings deposits are part of M2. Demand deposits are not part of M1. M1 is larger than M2. M2 is more liquid than M1.
Sign Up Forgot Password?