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 one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits wh
MrRissso [65]

Answer: Increasing current profits when doing so lowers the value of the company's equity.

Explanation:

The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.

When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.

If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.

6 0
2 years ago
When workers stop working until management meets certain conditions, the event is called a _______?
TiliK225 [7]

When workers stop working until management meets certain conditions, the event is called a Strike.

Strikes are usually performed by the workers to put their unfulfilled demands in front of the management and workers intent to continue the strike until their demands are fulfilled or other remedies are given which satisfy the workers.

Hence the correct answer is <u>Strike</u>


5 0
3 years ago
1. Assume that Lyn Addie is an unmarried employee. Her $1,000 of wages have deductions for FICA Social Security taxes, FICA Medi
fredd [130]

Answer:

Net pay $764.5

Explanation:

given data

wages = $1000

income taxes  = $159

solution

particular                              net pay

Gross wages                        $1000

less  

Income taxes withheld         $159

FICA-social security             (1000×6.2%)    = $62

FICA-Medicare taxes           (1000×1.45%)   =       $14.5

Total taxes withheld             (235.5)

So, Net Pay                            $764.5

5 0
2 years ago
Suppose that you observe a market with four firms, each with about 25% market share. What does it suggest about the following at
emmasim [6.3K]

level of differentiation across the firm's offerings

Answer: Option C.

<u>Explanation:</u>

Differentiation are the differences that a firm might offer to his customers and clients. These differences make the firms different from each other which exist in the market.

More different and innovative practices that a firm has compared to the competitors, more successful it would be in the market and would have more customers attracted towards it because of the innovation and the differentiation.

8 0
2 years ago
An oligopolistic market structure is distinguished by several characteristics, one of which is market control by a few large fir
Nonamiya [84]

Answer:

A

B

Explanation:

6 0
3 years ago
Other questions:
  • A project has cash flows of -$152,000, $60,800, $62,300, and $65,000 for years 0 to 3, respectively. The required rate of return
    5·1 answer
  • Scrum relies on three key roles. A person who acts on behalf of customers to represent their interests and who is responsible fo
    13·1 answer
  • David knows that the beta of his portfolio is equal to 1, but he does not know the risk-free rate of return or the market risk p
    15·1 answer
  • Define cash flow..............................
    8·2 answers
  • _________ payments are known as lump sums. We can solve for the future value or the present value of a lump sum as we discuss be
    6·1 answer
  • The person who receives financial protection from a life insurance plan is called a: AInsured BBeneficiary CGiver DPayer
    8·1 answer
  • Vulcan Materials stock price soared in the days following the election of President Trump. Vulcan's products, such as asphalt an
    5·1 answer
  • Which of the following is consistent with the law of​ demand?
    6·1 answer
  • Please follow me..........​
    7·2 answers
  • Which reason for trade barriers is being used when the us refuses to trade with another country because they use child labor to
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!