Multiple Choice
All of these are classified as "near monies" rather than money for the reasons specified EXCEPT
A) savings deposits, because savings cannot be spent. It must be transferred into cash or checking to be spent.
B) money market deposit accounts, because, while checks can be written, there are restrictions, such as limits on the number of withdrawals per month, that keep them from serving daily needs as a medium of exchange.
C) small-denomination time deposits, because they cannot be used as a medium of exchange and carry penalties for early liquidation.
D) credit cards, because they do not provide a store of value.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: _ are near money.<br>A) Money market deposit
Q3: A decrease in incomes tends to shift
Q4: Which statement is TRUE?<br>A) Coins constitute 90%
Q5: (Figure: Market for Loanable Funds 2) Based
Q6: Which statement about M2 is incorrect?<br>A) M2
Q8: (Table: Retirement Plans for Four Companies) Jan
Q9: Near monies include<br>A) savings deposits.<br>B) currency.<br>C) demand
Q10: (Table: IRA Contributions) The table shows the
Q11: Which asset is NOT included in M2?<br>A)
Q12: Joan begins the month with $100 in