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.