BU204_Nelson_Cialyn_Unit8_Assignment

BU204_Nelson_Cialyn_Unit8_Assignment - Cialyn Nelson BU204...

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Cialyn Nelson BU204 Macroeconomics Unit 8: Assignment October 22, 2010 Vocabulary Fiat Money: state-issued money which is neither legally convertible to any other thing To me this is when money that cannot be changed to any other form. M1: M1 is defined as all currency in circulation plus checking account deposits and other checkable deposits in banks, credit unions, and other depository institutions. To me, M1 includes the measurement of all money that is in relation to all banks and many types of accounts. Including anything related to deposits, checking accounts and credit unions. M2 : M2 is the sum of M1 (i.e. currency in circulation plus checking account deposits and other checkable deposits in banks, credit unions, and other depository institutions) and other deposits not included in M1. Those deposits included in M2 (but not in M1) are: savings deposits such as MMDAs (i.e. money market deposit accounts), small time deposits (less than $100,000) and retail MMMFs (i.e Money Market Mutual Funds).
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BU204_Nelson_Cialyn_Unit8_Assignment - Cialyn Nelson BU204...

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