Are credit cards M1 or M2 funny mad libs / modern whig party platform
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Are credit cards M1 or M2

If your answer is about “credit cards,” then you are really talking about spending M1—although it is M1 from the account of the credit card company, which you will repay later when you credit card bill comes due. savings​ accounts, mutual​ funds, small time​ deposits, and credit cards. What exactly is included?Cash in your pocket certainly serves as money.

New York Federal Reserve Bank c. the FOMC d. none of … For the following list of items, indicate if they are in M1, M2, or neither: Let's take a look at what is considered to be money and where "[M1] consists of currency in the hands of the public; travelers checks; demand deposits, and other deposits against which checks can be written.

Sometimes elements of M1 are not treated alike; for example, some businesses will not accept personal checks for large amounts, but will accept traveler’s checks or cash. I do not have the $50 so I get my girlfriend to pay for the game on my behalf with the promise that I'll pay her back at some later date. Neither in M1 or M2 That is part of M1, and because M2 includes M1 it is also part of M2 M3 includes M2 plus large-denomination ($100,000 or more) time deposits, balances in institutional money funds, repurchase liabilities issued by depository institutions, and Eurodollars held by U.S. residents at foreign branches of U.S. banks and at all banks in the United Kingdom and Canada. Changes in banking practices and technology have made the savings accounts in M2 more similar to the checking accounts in M1. So we have the following transactions:​We would not consider this loan to be "money" for a couple of reasons:The $50 my girlfriend pays the shopkeeper is money. Here's why:Suppose my girlfriend and I go shopping for classic video games, and I find a copy of Music Machine for the Atari 2600 selling for $50. Credit card limits are included in a. M1 but not M2 b. M2 but not M1 c. M1 and M2 d. Neither M1 nor M2. a. Professor of Business, Economics, and Public PolicyHow Much Is the Per Capita Money Supply in the U.S.? What exactly is included?Cash in your pocket certainly serves as money. Practice until you feel comfortable doing the questions. Since credit cards do not fall under M1, M2 or M3 they are not considered to be ​part of the money supply. Are they money, too? Rather than trying to state a single way of measuring money, economists offer broader definitions of money based on the concept of liquidity. Indeed, the macroeconomic policies concerning money are largely conducted through the banking system.These questions allow you to get as much practice as you need, as you can click the link at the top of the first question (“Try another version of these questions”) to get a new set of questions. But having more credit cards or debit cards does not change the quantity of money in the economy, any more than having more checks printed increases the amount of money in your checking account.One key message underlying this discussion of M1 and M2 is that money in a modern economy is not just paper bills and coins; instead, money is closely linked to bank accounts.

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