--%>
Assignment Help - homework help

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 : Define Fund Balance Fund Balance : For

    Fund Balance: For accounting aims, the excess of a fund’s assets over its liabilities. And for budgeting aims, the surplus of a fund’s resources over its expenses.

    		•
  • Q : What is a Provision Provision : The

    Provision: The language in a bill or act which imposes necessities or constraints on actions or expenditures of the state. The provisions are frequently employed to constrain the expenditure of appropriations however it might also be employed to give

    		•
  • Q : Describe the bird in the hand theory of

    Describe the bird in the hand theory of cash dividends. The bird in the hand dividends theory says that dividends attained now are better than a promise of future dividends. Uncertainty is resolved while a dividend is paid.

    		•
  • Q : Biometrics in banking operations

    Biometrics is one kind of technology that can be used to control these kinds of fraudulent practices. May be it is the system which cannot completely stop the practices but yes at least it is the way which can reduce it to the barest minimum. The conv

    		•
  • Q : Correlate each to the New Economy

    Normal 0 false false

  • Q : Distinguish among refinancing debt and

    Normal 0 false false

  • Q : Clarify retained earnings and its

    Clarify retained earnings?  Describe importance of this? Retained earnings represent the sum of all the earnings available to common stockholders of a business at the time of its entire history, minus the tota

    		•
  • Q : Define Senate Senate : The higher house

    Senate: The higher house of California’s Legislature comprising of 40 members. As an outcome of Proposition 140 (that is, 1990, term limits) and Proposition 28 (that is, 2012, limits on Legislators’ terms in office), members chosen in or a

    		•
  • Q : Define Revolving Fund Revolving Fund :

    Revolving Fund: Usually refers to a cash account termed as an office revolving fund (ORF). This is not a fund however an advance from an appropriation. The agencies might use the cash advance to pay out ORF checks for instant requirements, as specifie

    		•
  • Q : Explain Pro Rata Pro Rata : It is the

    Pro Rata: It is the amount of state administrative costs, paid from General Fund and the Central Service Cost Recovery Fund (example, amounts expended by the central service departments like the State Treasurer's Office, State Controller's Office, Sta

    		•