MacroEconomics 15.2 Defining Money
An example of a fiduciary monetary system is
American one-dollar bills.
The M2 measurement of the money supply includes all of M1 plus several other highly liquid assets. Which of the following is not one of those assets which is included in M2?
Credit card balances
There are two major ways of measuring money, M1 and M2. Which statement is true about the measuring of M1 and M2?
M1 is measured by the transactions approach which stresses the role of money as a medium of exchange while M2 is measured by the liquidity approach which stresses the role of money as a temporary store of value.
A currency will cease to function as money if
people think that they will not be able to use it to exchange for goods and services later.
The M1 measurement of the money supply includes all of the following components except
savings deposits.