--%>

Components of the M1 money supply

Describe the components of the M1 money supply? State the largest component of the M1 money supply? State legal tender components of M1? Give the reason of greater face value of a coin than its intrinsic value? Distinguish among M2 and M2+ and M2++.

E

Expert

Verified

M1 is currency (in the circulation) plus chequable (demand) deposits. The biggest component of M1 is chequable deposits. If a coin face value were not greater than its intrinsic (metallic) value, people would eliminate coins from circulation and sell them for their metallic content. M2 = M1 + personal savings deposits & non-personal (business) notice deposits at chartered banks. M2+ = M2  +  mortgage loan companies and deposits at trust, caisses populaires and credit unions, and government savings institutions +  money market mutual funds, and life insurance annuities. M2++ = M2+ + Canada Savings Bonds & other retail instruments + non-money market funds.

 

   Related Questions in Finance Basics

  • Q : What is in store for banking

    What is in store for banking consolidation? Merger activity is a natural procedure by which companies make themselves more efficient and better capable to compete for customers. The banking industry is no exception

  • Q : What is means of correlation

    What does this mean while we say that the correlation coefficient for two variables is -1? What does it mean if this value were zero? What does it mean if it were +1?Correlation is calculated by the correlation coefficient, represented through t

  • Q : Define Augmentation Augmentation : An

    Augmentation: An authorized raise to a formerly authorized appropriation or allotment. This augment can be authorized by the Budget Act provisional language, control sections, or other legislation. Generally a Budget Revision or an Ex

  • Q : Capital investment appraisal methods

    The capital investment appraisal methods like NPV, IRR, ARR, PV and Time value of money have become irrelevant post Celtic Tiger. Due to the depth of the recession companies do not have budgets to invest. Explain? At first use this

  • Q : Explain Transfers Transfers : As

    Transfers: As employed in Schedule 10Rs and fund situation statements, transfers replicate the movement of resources from one fund to the other based on statutory authorization or particular legislative transfer appropriation authority.

  • Q : Influence of mergers and acquisitions

    What influence has mergers and acquisitions had on a customer's access to branches?A branch closing that has resulted from a merger require not necessarily mean a lost relationship. The cause a branch closes is usually the presence of a nearby b

  • Q : Define the term Baseline Adjustment or

    Define the term Baseline Adjustment or  Baseline Budget: Baseline Adjustment: Also termed to as Workload Budget Adjustment.

    Q : Define the term Unencumbered Balance

    Define the term Unencumbered Balance: It is the balance of an appropriation not so far committed for particular purposes.

  • Q : Compute GDP by the expenditure - income

    Normal 0 false false

  • Q : Define Final Budget Summary Final

    Final Budget Summary: A document generated by the Department of Finance subsequent to enactment of the Budget Act that reflects the Budget Act, any vetoes to the language and/or appropriations, technical corrections to the Budget Act, and summing up t