What exactly is included?Cash in your pocket certainly serves as money. The money part of the transaction between you and the credit card company only comes into play when you pay your bill. If you buy the game using a credit card, the credit card company will pay the shopkeeper today and you will have an obligation to pay the credit card company when your credit card bill comes in. Mike Moffatt, Ph.D., is an economist and professor. Are they money, too?
He teaches at the Richard Ivey School of Business and serves as a research fellow at the Lawrence National Centre for Policy and Management. savings accounts, mutual funds, small time deposits, and credit cards. d. neither M1 nor M2. 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. Rather than trying to state a single way of measuring money, economists offer broader definitions of money based on the concept of liquidity. The state is true. M2 includes M1, plus savings accounts, time deposits of under $100,000, and balances in retail money market mutual funds. The $50 I will pay my girlfriend tomorrow is money, but the obligation I hold between today and tomorrow is not money.Credit cards work in the exact same manner as this loan. Changes in banking practices and technology have made the savings accounts in M2 more similar to the checking accounts in M1. 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. M1, savings accounts, small time deposits, money markets, and credit cards. a. Professor of Business, Economics, and Public PolicyHow Much Is the Per Capita Money Supply in the U.S.? Neither in M1 or M2 That is part of M1, and because M2 includes M1 it is also part of M2 A In short, credit cards, debit cards, and smart cards are different ways to move money when a purchase is made. But what about checks or credit cards? 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. 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. For example, some savings accounts will allow depositors to write checks, use automatic teller machines, and pay bills over the Internet, which has made it easier to access savings accounts. At the end of February 2015, M1 in the United States was $3 trillion, while M2 was $11.8 trillion. We defined money as anything that is generally accepted as a means of payment, is a store of value, can be used as a unit of account or a standard of deferred payment. What exactly is included?Cash in your pocket certainly serves as money. The M2 definition of the money supply includes M1, savings accounts, small time deposits, and money markets.
Practice until you feel comfortable doing the questions. M1 money supply includes coins and currency in circulation—the coins and bills that circulate in an economy that are not held by the U.S. Treasury, at the Federal Reserve Bank, or in bank vaults. 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. Are they money, too? New York Federal Reserve Bank c. the FOMC d. none of …
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. For example, M2 includes The Federal Reserve System is responsible for tracking the amounts of M1 and M2 and prepares a weekly release of information about the money supply. Since credit cards are loans, they do not fall under M1, M2 or M3 they are not considered to be part of the money supply, as such, the answer is "none of the above."
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