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Money Supply Basics: True or False

Yes or No

Played 1 %Accuracy 80 Average time 00:28

About this activity

Test your knowledge of money supply definitions.

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Money Supply Basics: True or False
 

Money Supply Basics: True or FalseOnline version

Test your knowledge of money supply definitions.

by Montex
1

M3 is included in broad money alongside M2.

2

Travellers’ cheques cannot be exchanged for cash.

3

The money supply is influenced by the central bank.

4

Broad money (M2) consists of M1 plus savings accounts and money market accounts.

5

Money supply is the total stock of money in the economy at a particular time.

6

The central bank has no influence over the money supply.

7

Savings accounts are part of M1.

8

Broad money equals M2 minus savings accounts.

9

M1, the narrow money, includes coins, notes, deposits on which cheques can be drawn, and travellers’ cheques.

10

Broad money can be easily converted into cash or transferred to a cheque account to be used as money.

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