M1 and M2 are two definitions of the money supply. Determine whether the items listed are included in the money supply under each of these definitions.

a. Common stock is part of _______________.
b. Money market account balances are part of _______________.
c. Balances in savings accounts are part of _______________.
d. Balances on checking accounts are part of _______________.
e. Certificates of deposit are part of _______________.
f. Currency is part of _______________.
g. Credit cards are part of _______________.
h. Gold is part of _______________.

WORD BANK:
- M1 only.
- both M1 and M2.
- M2 only.
- neither M1 or M2.

Answers

Answer 1

Answer:

a. Common stock is part of neither M1 or M2.

b. Money market account balances are part of M2 only.

c. Balances in savings accounts are part of M2 only.

d. Balances on checking accounts are part of both M1 or M2.

e. Certificates of deposit are part of M2 only.

f. Currency is part of both M1 or M2.

g. Credit cards are part of neither M1 or M2.

h. Gold is part of neither M1 or M2.

Explanation:

M1 is the narrower of the two definitions and includes only the most liquid types of money such as currency, traveler's checks, and balances in checking accounts. M1 is physical money supply that includes cash, coins, demand deposits, etc. It is also know as liquidity.

M2 includes all M1 plus near money such as savings deposit, money mutual fund and other time depositthat are less liquid and not easily transferrable to physical money. M2 is a broader definition. M2 includes M1, certificates of deposit, money market account balances, and savings account balances.


Related Questions

changes seen in nepal​

Answers

is that a question or ?? i don’t know because there’s no pictures

STE
(C) the French
(D) Native Americans
Which of the following events occurred first?
(A) Columbus claimed San Salvador for Spain.
(B) Europeans found a water route to Asia.
(C) Magellan sailed around South America into the Pacific Ocean.

Answers

STE is D and 2 thing is B

Assume you are examining the country of Ireland. Assume Ireland is initially in equilibrium. What happens to Irish equilibrium when the Irish government decides to subsidize all Irish farmers so that more crops can be grown? Hint: examine this in the context of production only.

Answers

Answer: The central subsidy, the single farm payment, is paid by the hectare; the more land you have, the more money you receive.

Explanation: The U.S. government created farm subsidies during the Great Depression to offset the surplus of crops and low prices of both crops and livestock

You have just begun a new job as a bank teller at Santa's Elf Bank. Your supervisor asks you what the difference is between reserves and excess reserves in terms of banking. You want to impress your supervisor, so you recall what you learned in your economics course in order to form your response.
What is the difference between reserves and excess reserves in terms of banking?

Excess reserves refer to the required amount that the banks have on hand beyond the required reserve amounts, and thus, is available to loan out. Reserves are the funds banks keep on hand to meet reserve requirements established by the Fed.

Reserves refer to the cash that banks have on hand to satisfy the demands of their employees and the reserve requirements of the Fed. Excess reserves refer to the amount of reserves banks have in excess of employee reserves.

Reserves refer to the cash banks have on hand to satisfy the Federal Reserve requirements. Excess reserves refer to the amount of reserves that banks have in excess of the legally required reserves.

Excess reserves refer to the reserves that the banks have to deposit with the Fed. Reserves are the money that banks have on hand to loan to their customers.

Answers

Reserves refer to the cash banks have on hand to satisfy the federal reserve requirements. Excess reserves refer to the amount of reserves that banks have an excess of the legally required reserves.

Reserves are the funds banks keep on hand to meet the demands of customers and reserve requirements of the fed. These funds are kept at the bank and the vault or on deposit at the fed.

Excess reserves or reserves in excess of the required reserves that the bank is required by law to hold. Banks will usually loan out these excess reserves, which can lead to an increase in the money supply.

As a result of the 1763 Treaty of Paris, England gained new land and territory in North America. Why did this contribute to the desire for independence?

Answers

This contributed to the desire for independence because England would not allow the colonists to settle in the new land.

Explain and evaluate how culture and civilization has made the ecology and object that the human subject can and has to tame and conquer and manipulate

Answers

Answer:

The cultural is begin with our society we can manage our society begin by our culture .

Explanation:

The cultural begin by a society that's make our environment befor a culture and cilivization make a people.

Which of the following describes why suburbs were attractive for veterans after World War II? (1 point) O Suburbs offered better paying jobs. O Suburbs had new inventions for convenience. O Suburbs were affordable and had space. Suburbs promoted consumerism.​

Answers

One reason why veterans were quite attracted to the suburbs after WWII was that Suburbs were affordable and had space.

Why were suburbs attractive to veterans?

Suburbs like the Levittown gained popularity and were really attractive to a lot of Americans thanks to their affordable nature.

They also offered quite a bit of space for families to be raised. Both these factors attracted veterans of WWII who were looking to settle down.

In conclusion, option C is correct.

Find out more on Levittown at https://brainly.com/question/173381.

Answer:

The Correct Answer Is Suburbs Were Affordable And Had Space.

Explanation:

what did the Articles of Confederation say about taxing the people?

Answers

Answer:

To avoid any perception of “taxation without representation,” the Articles of Confederation allowed only state governments to levy taxes. To pay for its expenses, the national government had to request money from the states.

Explanation:

Answer:

The state governments could create tax laws for the central government to enforce.

Explanation:

The states, not Congress, had the power to tax. Congress could raise money only by asking the states for funds.

hope this helps:))

discuss three contributing factors that led to the gender based violence ​

Answers

Answer: Gender-based violence has many causes but we've identified three key factors — and outlined ways we're working to address them.

Harmful Gender Norms. Gender stereotypes and are often used to justify violence against women.

Hunger

War and conflict

Explanation:

(IS WALMART GOOD FOR AMERICA VIDEO)

What most surprised you about this film?

Answers

Answer:

That Walmart is good for america.

Explanation:

There are three ducks, four cows, and two cats. How many legs are there?

Answers

Answer:

Six legs.

Explanation:

the most accepted answer for this riddle is six. While some people think the answer to be zero as the think that all the animals listed are on the bed and the chickens flying is a distraction.

Answer:

16 cow legs, 6 duck legs, 8 cat legs. In total, there are 30 legs.

(correction: SIX legs)

qualitative sociology can be defined as


Answers

Hi!qualitative sociology can be defined as In-depth interviews, focus groups, and/or analysis of content sources of its data.

Do you think telenovelas educate people in this country Yes [ ] No [ ]
1. Give reasons for your answer
a).
b)..
c)....

Answers

Answer:

Telenovelas play an important role in communicating Latin American issues. Viewers watch and engage with this popular melodramatic medium on a daily basis. As a result, telenovelas are a valuable ritual for Latin Americans. Telenovelas affect how societies view themselves.

Explantion:

If there are 250,000 kilocalories (kcal) of energy in the grasses approximately how many kcal of energy are in mice?

Answers

If there are 250,000 kilocalories (kcal) of energy in the grasses, there will be 25,000 kcal of energy are in mice.

What is Trophic level?

This is defined as the position an organism occupies in the food web. As we go up the food web, the energy transferred is 10 percent.

If the grass has 250,000 kilocalories (kcal) of energy, then the mice will have 10 percent of it which is 25,000 kcal.

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Which statement is an example of an open market operation?

The Federal Reserve sells bonds via the commercial banking system.

Naftali runs a bazaar in Baghdad, Iraq, selling trinkets to tourists.

The central bank lowers the interest rate from 5% to 3% on the loans it gives to commercial banks.

A bank loaning out all but the requisite 10% of its funds to hold in storage.

Answers

Answer:

A. The Federal Reserve sells bonds via the commercial banking system.

Explanation:

Open market operations are liquidity injecting or liquidity absorption from the economy by the central bank through the selling or buying of government securities.

Open market operations involve the central bank influencing the money supply and the interest rate through selling or buying bonds. The Federal Reserve Bank selling bonds to the public through commercial banks is an example of this.

When central bank wants to increase the money supply in economy, it buys the boonds (with the help of commercial banks) from the public. Central bank receives the bonds and gives money to the public. In this way money supply increases in economy.

Banks often have an incentive to loan out all funds up to the reserve requirement, which is the amount a bank must hold as vault cash or on deposit with the Federal Reserve Bank, but this is not an open market operation.

If central bank wants to decrease the money supply it sells the bonds to the public. Central bank lowering the interest rate is not included in open market operations but it is a instrument of monetary policy. Open market operations are different from monetary policy.

Increasing or decreasing the discount rate, which is the rate at which the Federal Reserve loans money to commercial banks, affects the money supply, but this is not considered an open market operation.

The statement is an instance of an open market operation is "The Federal Reserve sells bonds via the commercial banking system." Thus, option A is correct.

What is Federal Reserve?

The Federal Reserve System is the United States of America's central banking system.

The central bank uses open market operations to inject or absorb money into the economy by selling or purchasing government securities.

The  Federal Reserve uses open market operations to influence the money supply and interest rates by selling or purchasing bonds. One example is the Federal Reserve Bank selling bonds towards the public through commercial banks.

When the central bank wishes to raise the money supply in the economy, it purchases bonds from the public (with the support of commercial banks). The central bank receives the bonds and distributes the proceeds to the general population. In this approach, the economy's money supply expands. Hence, option A is correct.

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Which of the following requirement had to be met before a state could be formed in the northwest territory a the government decided to declare a specific part of the territory a state A religious group claim land for it on in order to start a religious community one of the original 13 states claimed section on the territory fortune 60,000 people or more lived in the area

Answers

Answer:

your answer is in the question

Explanation:

you have to have 60,000 people or more to become a state

Which statement best defines the permanent income hypothesis?

Consumer spending is proportional to the ratio of people in stable full‑time employment– that is, with "permanent" income–and people in unstable part‑time employment–that is, with "temporary" income.

When in a recession, although current consumer spending can be observed, future consumer spending cannot be predicted due to an unknown number of people leaving their temporary recession jobs for higher‑paying, permanent jobs that better fit their skills.

Consumer spending depends on both the income and wealth of people in the economy.

Consumer spending depends on the level of disposable income that people expect to have over the course of their lifetime.

Answers

Consumer spending depends on both the income and wealth of the people in the economy.

Indicate which group within the Federal Reserve System has responsibility for each action listed below,

a. Supervises and regulates member banks
b. Distributes coin and currency
c. Appointed by the president to serve 14 year terms
d. Oversees national banking and consumer credit regulation
e. Oversees the buying and selling of government securities as a form of monetary policy
f. Comprises the Board of Governors and five regional bank presidents
g. Provides information on regional economic conditions through the Beige Book report

WORD BANK
- Regional Federal Reserve District Banks
- Board of Governors of the Federal Reserve System
- Federal Open Market Committee

Answers

a. Regional Federal Reserve District Banks
b. Regional Federal Reserve District Banks
c. Board of Governors of the Federal Reserve System
d. Board of Governors of the Federal Reserve System
e. Federal Open Market Committee
f. Federal Open Market Committee
g. Regional Federal Reserve District Banks

The 12 regional Federal Reserve District Banks are responsible for supervising and regulating the member banks within their districts, distributing coin and currency, and providing information on current regional economic conditions to the Board of Governors and the Federal Open Market Committee, or FOMC.

The Board of Governors consists of seven members, with each member appointed to a 14 year term by the president. The Board of Governors is responsible for the oversight of the banking industry in general, as well as consumer credit regulations.

The Federal Open Market Committee, or FOMC, is responsible for open market operations, the main tool of monetary policy. The FOMC is comprised of the seven members of the Board of Governors, as well as five presidents of the various regional Fed banks.

How has the telephone evolved?
There are TV's that are phones.
There are watches that are phones.
Telephones haven't changed much over time.
There are phones with cords.

Answers

Answer:

there are watches that are phones

Explanation:

How is a civil war different from other wars?

Answers

Answer:

Most other wars calls for a nation (and his/her allies) declaring war or special military operation against another nation (and his/her allies). These can be broken down to different types of wars as well, but typically it is against foreign adversaries.

What makes a civil war different from other wars, is that both oppositional sides of the war are groups (or factions) within the same country. This means that all of them were citizens at one point, in which the disgruntled group breaks away politically to form their own nation to continue to strive for what they want, which the previous majority would not give them. In essence, each side is fighting their own countrymen.

Answer:

Hey! So civil wars are different from other wars because they are a lot more less violent and severe than the other wars. Also, civil wars can be when people fight against religions snd not directly at the government.

Explanation:

explanation is with the answer.

hi i need help with question

Answers

B is the right one


——-

Banks in Ruritania have a required reserve ratio of 5%. Round all answers to one place after the decimal.

What is the simple money multiplier?
simple money multiplier: $____________

Money leakages, however, are quite high. Required reserves and leakages amount to 40% of deposits. What is the leakage-adjusted money multiplier?
leakage‑adjusted money multiplier $_____________

If a financial crisis develops in Ruritania, with numerous loans going into default, is the money multiplier likely to increase or decrease?
- increase
- decrease

Which example does not represent a leakage from the money multiplier process?
- cash held by foreigners
- excess reserves
- cash held by the Fed
- cash held by individuals

Answers

Money is created when a bank receives a deposit, sets some of the funds aside for reserves, and loans out the rest. Deposits have at this point increased by the amount of the original deposit and the amount of the loan.

The size of this money multiplier depends on the required reserve ratio, the part held back by the banks, much as the expenditure multiplier depends on the marginal propensity to save, the part of income held back rather than consumed.

    Simple Money Multiplier= 1/Required reserve ratio

    Simple Money multiplier= 1/5%

    Simple Money Multiplier= 100/5

    Simple Money Multiplier= 20

But this is really an oversimplified view because it assumes that everyone deposits all of their money into the bank and that the banks loan out all they are legally allowed. Neither assumption is accurate. Individuals and firms hold cash, banks hold reserves in excess of the requirement, and some funds leave the country and are held by foreigners. These are referred to as leakages; a more accurate money multiplier would account for these leakages as well as required reserves.

    Leakage adjusted money multiplier= 1/Required reserves+leakages%

    Leakage adjusted money multiplier= 1/40%

    Leakage adjusted money multiplier= 100/40

    Leakage adjusted money multiplier= 2.5

With leakages, less is loaned out throughout the multiplier process, and the resulting money multiplier is smaller. During financial crises, banks are more hesitant to make loans, and so excess reserves will increase. The money multiplier therefore decreases.

This is because during financial crisis the banks aren't willing to engage into transactions more,they aren't willing to lend and accept deposits due to more such possibilities of default as a result the monetary base falls and reserve requirements rises (to restrict money supply).

Cash held by the Federal Reserve is not a leakage because this cash is not even part of the official money supply. It becomes money only when it leaves the Fed and circulates among firms, banks, and individuals.

please help me out if you can thank you!!!​

Answers

Commerce- the activity of buying and selling, especially on a large scale.
"the possible increase of commerce by a great railroad"

Indulgence-the action or fact of indulging.


Excommunicate- officially exclude (someone) from participation in the sacraments and services of the Christian Church.

Circumnavigate- sail or travel all the way around (something, especially the world).

5th word I don’t understand

Colony- a country or area under the full or partial political control of another country, typically a distant one, and occupied by settlers from that country.



Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal

discuss how the marginalization of occupation groups hinder technological advancement in ethiopia

Answers

The marginalization of occupation groups hinder technological advancement in Ethiopia as it leads to misguided economic policies.

What is technology?

It should be noted that technology simply means the application of scientific knowledge in an industry.

In this case, the marginalization of occupation groups hinder technological advancement in Ethiopia as it leads to misguided economic policies.

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What monetary policies should the Federal Reserve enact to combat higher inflation rates for consumer goods and services?(1 point)

Enact contractionary monetary policies to decrease the money supply.

Enact contractionary monetary policies to increase money supply.

Enact expansionary monetary policies to decrease the money supply.

Enact expansionary monetary policies to increase the money supply.

Answers

The policy the Federal Reserve should enact to combat higher inflation rates for consumer goods and services is contractionary monetary policies to decrease the money supply.

What is a contractionary monetary policy?

Monetary policy are policies taken by the central bank of a country to affect the level of money supply. Contractionary monetary policy are policies taken to reduce money supply. When money supply decreases, aggregate demand falls and inflation slows.

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Answer: Enact contractionary monetary policies to decrease the money supply

Explanation:

Which of the following resulted from the recent renegotiation of NAFTA?(1 point)

The economic gap decreased between member nations.

A uniform currency was established for all member nations.

Government contracts were offered to all members.

Agricultural trade was improved across all member nations.

Answers

Answer:

Real answer is: Agricultural Trade was improved across all member nations

Explanation:

Agricultural trade was improved across all member nations is the  resulted from the recent renegotiation of NAFTA. Hence, option D is correct.

What is NAFTA?

The most significant aspect of the bilateral commercial relationship between the United States and Mexico is the North American Free Trade Agreement, which was passed in 1994 and established a free trade zone for Mexico, Canada, and the United States.

The North American Free Trade Agreement (NAFTA), which was signed by Canada, Mexico, and the United States in 1992 and came into force on January 1, 1994, created a free-trade zone in North America. The majority of commodities produced by the signatory countries were immediately free of tariffs thanks to NAFTA.

Some detractors claim that NAFTA is to blame for job losses and pay stagnation in the U.S. because Mexican enterprises' competition has compelled many U.S. businesses to move to Mexico.

Thus, option D is correct.

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Identify how each of the scenarios affects short‑run aggregate supply.

a. The U.S. government increases the minimum wage.
b. Widespread adoption of the Internet by businesses increases productivity and efficiency.
c. The government decreases the payroll tax paid by employers.
d. The U.S. government decreases the personal income tax rate paid by households.

WORD BANK
increase
decrease
no change

Answers

Answer:

a. decrease

b. increase

c. increase

d. no change

Explanation:

A higher minimum wage increases labor costs for the firm and aggregate supply decreases.

An increase in productivity caused by the Internet increases the aggregate supply curve.

A decrease in taxes paid by firms reduces operating costs and causes the aggregate supply curve to increase.

If businesses anticipate a recession, the aggregate supply curve decreases as firms cut production levels.

A decrease in the personal income tax rate paid by households has no impact on aggregate supply; this would impact aggregate demand.

How could nuclear bombs impact all people and the entire planet? Why did some people protest
nuclear bombs? Do you agree or disagree with their reasons? Use
support your claims.

Answers

Answer:

1.A single nuclear bomb detonated over a large city could kill millions of people. The use of tens or hundreds of nuclear bombs would disrupt the global climate, causing widespread famine.

2.It razed and burnt around 70 per cent of all buildings and caused an estimated 140,000 deaths by the end of 1945, along with increased rates of cancer and chronic disease among the survivors.

Explanation:

i hope this helps

Which line from the
passage best supports the idea
that the printing press was an important invention?
x "The printing press, introduced in Europe"
"Soon, printers were in business across Europe"
S
"Gutenberg's invention changed all that"
"The ideas of the Reformation began to spread"

Answers

Gutenberg's press is considered to be one of the most remarkable inventions in history as it allows for the transfer of knowledge.

What is the most important result of the printing press?

The immediate effect was that it transmitted information quickly and accurately. This has helped to build comprehension in public reading and writing.

Gutenberg's press was invented by Johannes Gutenberg about 1439. Johannes was a blacksmith who invented the first printing press.

Thus, "The ideas of the Reformation began to spread" best supports the idea that the printing press was an important invention.

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Answer:

D-The ideas of the Reformation began to spread”

Explanation:

Compare and contrast mountains and volcanoes.

Answers

Answer:

A mountain is formed due to various geological processes like movement and opposition of tectonic plates but a volcano is formed around a vent that allows magma to reach the surface of the earth. It all has to do with plate tectonics. A mountain is formed by the movement and opposition of tectonic plates.

Explanation:

I hope my answer help

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