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Mi is equal to: O savings deposits+ money market mutual funds (retail) + currenc

ID: 1109874 • Letter: M

Question

Mi is equal to: O savings deposits+ money market mutual funds (retail) + currency O M2-sa vings deposits (including money market deposit accounts)-small-denomination time d mutual funds (retail) O currency held outside banks + checkable deposits + credit card balances O M2-M1 + savings deposits QUESTION 3 In economics, money is defined as O a any asset people generally accept in exchange for goods and services. O b, the total value of one's assets minus the total value of one's debts, in current prices. Oo- the total amount of salary, interest, and rental income earned during a year. Od. cash and assets in your stock portfolio Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Explanation / Answer

2. M1 is the most narrowly defined money supply.

M1= M2 - Saving deposit(including money market deposit account) - money market mutual funds(retail) - small denomination time deposit

Answer- option B

3. In economics, money is defined as anything that serves as a medium of exchange, store of value.

Answer- option A

5. Discount rate is the interest rate that is charged to banking institutions(commercial banks and other depository institutions) for funds borrowed from federal bank.

Answer- option D

6. When conducting open market purchase, the Fed buys government bond and in doing so, money supply increases in the economy as the Fed buys bonds in Exchange of money.

Answer- option C