Answered: Which of the following is included in…

Which of the following is included in M2, but not in M1? O checking account deposits O cash and coins O time deposits O traveler's checks

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 3PA

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If your grandmother gives you a $20 bill and you deposit that into your and M2 Money. checking account, then M1 money. O stays the same; stays the same O decreases; increases increases; increases O increases; decreases increases; stays the same
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1) Explain the differences between, saving, checking, and money market accounts, what are the potential risks of a money market account? 2) Give a scenario for which you, a high school senior might use a certificate of deposit (CD). What are the risks/rewards of using a CD? 3) Who insures bank customers money in case of an economic collapse, and for how much?
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