Economics help here..?
Question:
a.unit of account
b.store of value
c.medium of exchange
d.none of the above
2.The major difference between M1 and M2 is that
a.M1 is a stock variable while M2 is a flow variable.
b.M2 is a stock variable while M1 is a flow variable.
c.traveler's checks are part of M1.
d.time deposits and savings deposits are included in M2.
3.Put the following assets in order of their liquidity, from most liquid to least liquid
a.currency, checking deposits, government bonds, savings deposits
b.checking deposits, savings deposits, currency, government bonds
c.checking deposits, currency, government bonds, savings deposits
d.currency, checking deposits, savings deposits, government bonds
Answer:
here are the right answers for 2 and 3:
2. d. time deposits and savings deposits are included in M2.
3. a. currency, checking deposits, government bonds, savings deposits
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