Question

When you thought you had $4 in your bank account, but you actually have $30

A) Surprise
B) Relief
C) Confusion
D) Disbelief

Answer 1

M1 and M2 are classifications of the money supply in an economy, with M1 including the most liquid forms of money and M2 including M1 plus less liquid forms. The items in question fall into different classifications of M1 and M2.

Step-by-step explanation:

M1 and M2 are classifications of the money supply in an economy. M1 includes the most liquid forms of money, such as currency, demand deposits, and traveller's checks. M2 includes M1 plus less liquid forms of money, such as savings deposits, time deposits, and money market mutual funds.

Based on the list of items:

1. a. Your $5,000 line of credit on your Bank of America card: Neither M1 nor M2
2. b. $50 dollars' worth of traveller's checks you have not used yet: M1
3. c. $1 in quarters in your pocket: M1
4. d. $1200 in your checking account: M1 and M2
5. e. $2000 you have in a money market account: M2