D) the number or biis beng prnebye ucau 15. Money supply as measured by M2 inclu

Question

D) the number or biis beng prnebye ucau 15. Money supply as measured by M2 includes: A) saving accounts, small time deposits, and money market mutual funds. B) MI plus saving accounts, small time deposits (CDs), and money market mutual funds C) MI plus checkable deposits, currency, and traveler's checks. D) savings accounts, bonds, and stocks 16. Monetary policy refers to: A) actions taken by the Federal Reserve to change the unemployment rate through government spending a B) actions of financial intermediaries to change the money supply in order to maximize profits. C) actions of the President to change the money supply to achieve the economy's macroeconomic goals. D) actions by the Fed. Res.to change the money supply primarily to achieve a balance in the internationalm E) actions by the Fed. Res. to change the money supply to achieve the economy's macroeconomic goals. 17. If the price of the US dollar rises in the foreign exchange market (such as against the Euro, Yen, Pound, e practical effect is: A) US goods, but not services, become more expensive in the world markets. B) Americans pay more for the currency needed to purchase foreign goods and services. C) foreign countries complain more loudly about the negative mact on their exports to the US.

Explanation / Answer

15. b)M1 + Savings Account + Small time deposits + money market mutual funds.

The answer is (b) because definition of M2 is M1+ 'near money'.

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