2 - Supply of Money
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Practice Questions
Test your understanding with targeted questions
What is M0 in the context of the money supply?
💡 Hint: Think about cash and coins!
List two components of M1.
💡 Hint: Consider what money you can easily use.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is included in M2?
💡 Hint: Think of it as a combination of cash and savings.
Is the following statement true or false? 'An increase in the reserve ratio decreases the money supply.'
💡 Hint: Higher reserve ratio - what does it mean for lending?
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Challenge Problems
Push your limits with advanced challenges
Discuss how changes in consumer savings behavior can impact the money supply.
💡 Hint: Think about how much money flows in versus out.
Evaluate the role of the central bank in controlling inflation and how it relates to the money supply.
💡 Hint: How does adjusting rates affect spending and saving?
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Reference links
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