Chapter 16 Money and the Banking System

| November 9, 2018

21)
Checking account balances are included in
A)
M1 only.
B)
M2 only.
C)
both M1 and M2.
D)
neither M1 nor M2.

22)
Currency is included in
A)
M1 only.
B)
M2 only.
C)
neither M1 nor M2.
D)
both M1 and M2.

23)
Traveler’s checks are included in
A)
M1 only.
B)
M2 only.
C)
both M1 and M2.
D)
neither M1 nor M2.

24)
Which of the following is NOT included in M1?
A)
savings accounts
B)
deposits in checking accounts
C)
deposits in checking accounts that pay interest
D)
traveler’s checks

25)
About 46% of M1 is composed of
A)
demand deposits.
B)
savings deposits.
C)
money market mutual funds.
D)
currency held by the public.

26)
The smallest single component of M1 is
A)
demand deposits.
B)
savings account balances.
C)
other checkable deposits.
D)
traveler’s checks.

27)
The largest single component of M2 is
A)
demand deposits.
B)
savings deposits.
C)
money market mutual funds.
D)
currency held by the public.

28)
In the 1980s, a new category entitled ________ was added to M1.
A)
traveler’s checks
B)
demand deposits
C)
other checkable deposits
D)
money market mutual fund deposits

29)
Checking accounts that pay interest are included in the
A)
“demand deposits” part of M1.
B)
“other checkable deposits” part of M1.
C)
“savings deposits” part of M2.
D)
“money market mutual funds deposits” part of M2.

30)
Deposits in savings accounts are included in
A)
M1.
B)
M2.
C)
both M1 and M2.
D)
neither M1 nor M2.

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