Practice Components Of Money Supply (2.1) - Chapter 3: Money and Banking
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Components of Money Supply

Practice - Components of Money Supply

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Practice Questions

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Question 1 Easy

What does M0 include?

💡 Hint: Think about coins and paper money.

Question 2 Easy

What is included in M1?

💡 Hint: Consider checking accounts.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does M0 consist of?

Demand deposits
Physical currency
Savings accounts

💡 Hint: Think about cash money.

Question 2

True or False: M1 includes physical currency and savings accounts.

True
False

💡 Hint: Consider the definitions of M1 and M2.

2 more questions available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Analyze the implications of a central bank increasing M0 without changing interest rates. What could be positive or negative outcomes?

💡 Hint: Consider the balance between money supply and controlled inflation.

Challenge 2 Hard

Determine how a decline in M2 might signal future economic trends. What indicators should policymakers monitor?

💡 Hint: Think about consumer behavior and how it reflects in the larger economy.

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