1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Likurg_2 [28]
2 years ago
12

What should be the function of money? What do you mean by M2?

Business
1 answer:
padilas [110]2 years ago
5 0

Money is any object in which you can exchange for goods or services. We consider this currency. Money is also a store of value so that you can get those goods and services at a later time (so you don't have to immediately use up the currency right away if you don't need to).

If at some future date, the unit of money isn't able to purchase as much as it used to, then we say that inflation has occurred. For example, if a loaf of bread costs $1 today but then $5 ten years from now, then we say inflation has kicked in.  

-------------------------

Before we talk about M2, it helps to start with M0. That's a zero and not the letter 'oh'. In economics, M0 is the total collection of all cash (bills and coins) that are in circulation. This means we're just talking about physical things people can touch. Building to M1, it involves everything M0 talks about plus things like travelers checks and demand deposits. So if you're talking about M1, then you involve all physical cash as well.

Then finally moving to M2, it involves everything M0 and M1 does, plus savings accounts and time deposits. By "time deposits", I mean things like mutual funds and money market accounts. Basically things you may hear about when talking about wall street.

In short, M2 involves all physical cash plus other electronic stores of value (this is a fairly vague definition but it may work in many settings). It does not involve large time deposits as that is what M3 handles.

You might be interested in
Which of the following phrases effectively describes a business’s income statement
irina [24]

Answer:

Financial picture

Explanation:

The phrases is suitable because An income statement will give a general picture for stakeholders regarding the company's financial condition in the past year.

it consist of several important financial information that might influence investors to either  put their money into the businesses or simply abandoned it. Such as how much income that the company able to generate, the amount of expenses that the company have to pay for the operation, how much of the income is liquid, etc.

3 0
3 years ago
The boy scouts, the veterans of foreign wars, most civic organizations, and many groups that people join because of mutual inter
NISA [10]
The boy scouts, the veterans of foreign wars, most civic organizations, and many groups that people join because of mutual interest are all examples of voluntary associations.  They worked together as volunteers in a form of union or agreement working together for a unified purpose or mutual interest.
5 0
3 years ago
What are three important skills for teamwork and collaboration?
Gelneren [198K]
1. Communication
2. Loyalty
3. Honesty
7 0
3 years ago
What isa premises account ​
ss7ja [257]

Answer:

A current asset is any asset that will provide an economic value for or within one year. Premises, or the property where business is done, is a part of the property, plants, and equipment, or PP&E, account. All PP&E has a useful life longer than one year, premises included, so it is considered a non-current asset.

Hope it helps. pa brainliest pa follow nadin tysm gomo

6 0
3 years ago
Suppose the reserve requirement is 15​%. What is the effect on total checkable deposits in the economy if bank reserves increase
Alekssandra [29.7K]

Answer:

Total Check-able deposits to increase by $333.5 billion

Explanation:

If the bank reserves increase by $50 billion, the total check-able deposits will increase by 50 * the credit multiplier.

Credit multiplier is the measure by which an increase in total money supply can be measured relative to an increase in banks' excess reserves.

Credit Multiplier = 1 / reserve ratio

Credit Multiplier = 1 / 0.15 = 6.67

So an increase in excess reserves of 50 billion will have a net effect of 50 * 6.67 = $333.5 billion. This will be the net increase in total check-able deposits or the money supply.

Hope that helps.

6 0
3 years ago
Other questions:
  • What is the difference between ordinal utility and cardinal​utility?
    7·1 answer
  • What is the term for the codes and formats used for the exchange of medical data?
    7·1 answer
  • What job did drivers perform on large southern plantations?
    7·1 answer
  • O'Hara takes temporary family leave from her job at Property Management Company to care for a family member with a serious injur
    6·1 answer
  • (TCO B) In the 1970s, Church & Dwight began selling Arm & Hammer Baking Soda Deodorant. Within 6 months the product was
    8·1 answer
  • In a market, demand is given by P = 100 − Q and the (private) marginal cost of production for the aggregation of all firms (the
    5·1 answer
  • Which of the following statements are TRUE about credit scores?
    6·2 answers
  • Axle Corporation acquires​ 100% of Drexel​ Corporation's stock from​ Drexel's shareholders for​ $500,000 cash. Drexel Corporatio
    14·2 answers
  • last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable
    7·1 answer
  • everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on treasury securities w
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!