Ask Question
BusinessBusiness
2 November, 08:54

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. 2 November, 11:19
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Sure Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. Analysts expect the price of Sure Tool Company shares to be $22 a year from now.
Answers (1)
What is the product of 546 * 5
Answers (1)
Robertson and Enrickson prepared an agreement to enter into a partnership. Both of the partners realized that outside capital was needed for the firm to begin operations;
Answers (1)
Journal entries come from what information
Answers (1)
Consider a bank that has $8,000,000 in deposits and $1,000,000 in reserves. Suppose it lends out $7,200,000. What are the bank's total assets and stockholders' equity? AMY: This bank has $ in assets, and stockholders' equity is $.
Answers (2)
New Questions in Business
Stephanie Roe utilizes the direct write-off method of accounting for uncollectible receivables. On September 15, she is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation of Jacob
Answers (1)
The Halpert Group produces a single product selling for $ 20 per unit. Variable costs are $ 2 per unit and total fixed costs are $ 10,000. What is the contribution margin ratio?
Answers (1)
Virginia supply offers their customers trade credit with terms 2/15, net 30. this implies that:
Answers (1)
Helga wrote this citation on her paper. "Global Sea Turtle Populations Decline." Sea Turtle Restoration Project. 26 May 2002. Web. 22 Sept. 2006. This best represents a A. book citation. B. magazine citation. C. web page citation. D.
Answers (2)
What were the two main opposing views of Adam Smith and Karl Marx?
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?