Which of the following is counted in broad money but excluded from narrow money?

Multiple choice question for Money, Interest Rates And Output. Select an option, then review the explanation below.

Explanation

Savings deposits are part of broad money (M2) but are not included in narrow money (M1), which mainly consists of currency and checkable deposits. Traveler's checks, currency held outside banks, and automatic transfer savings accounts are typically included in narrow money or are treated differently.

Practice related questions from the same subject.

1.How does a decrease in interest rates affect the monetary base, consumer credit availability, and the cost of consumer credit?
2.Which variable do central banks typically set directly, and which variable adjusts as a consequence?
3.What is it called when the central bank purchases financial assets in the open market to expand the monetary base?
4.M4 is considered a __________ monetary aggregate and encompasses deposits held at both __________ and __________?
5.Assuming all other factors remain constant, what happens to the quantity of real money holdings when interest rates increase?

Which of the following is counted in broad money but excluded from narrow money?

Explanation

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