b. Structural. c. Cyclical. d. Seasonal. e. Induced. 32. Which of the following is not included in M1? a. Currency in circulation. b. Transactions deposits, c. Time deposits. d. Travelers checks. e. Coins in circulation. 33. For something to serve well as money it should be: a. portable. b. durable. c. recognizable. d. scarce. e. All of the above 34. What Is liquidity? a. How fast, at full market value, an asset can be converted into a means of payment. b. How slow an asset turns Into a means of payment. c. Money that is not in circulation. d. Money that is in circulation. e. The money that is transferred from a savings account to a checking account. 35. Which of the following is/are money? a. Wealth. b. Credit Card. c. Income. d. All of the above. e. None of the above. Solution 32. M1 is that measures of money supply which includes all physical money, such as coins and currency, as well as demand deposits, checking accounts and Negotiable Order of Withdrawal (NOW) accounts. These money get easily converted into cash. Hence, time deposit is not included into m1 because it can not easily get converted into cash. 33. For something to be serve as money, it should be \"all of the above\". The main features of money include (1) durability, (2) divisibility, (3) transportability that is portability, and (4) noncounterfeitability that is its scarce nature as it can not be easily multiplied. 34. In simple terms, Liquidity is the feature of an asset that tells us about how fast that asset can be converted into cash or cash equivalent. Hence, it is option A \"how fast at full market value an asset an be converted into means of payment\". 35. None of the above are included into M1 , M2 or M3 definition of money hence none of the above is money..

1. b. Structural. c. Cyclical. d. Seasonal. e. Induced. 32. Which of the following is not included in
M1? a. Currency in circulation. b. Transactions deposits, c. Time deposits. d. Travelers checks. e.
Coins in circulation. 33. For something to serve well as money it should be: a. portable. b.
durable. c. recognizable. d. scarce. e. All of the above 34. What Is liquidity? a. How fast, at full
market value, an asset can be converted into a means of payment. b. How slow an asset turns
Into a means of payment. c. Money that is not in circulation. d. Money that is in circulation. e.
The money that is transferred from a savings account to a checking account. 35. Which of the
following is/are money? a. Wealth. b. Credit Card. c. Income. d. All of the above. e. None of the
above.
Solution
32. M1 is that measures of money supply which includes all physical money, such as coins and
currency, as well as demand deposits, checking accounts and Negotiable Order of Withdrawal
(NOW) accounts. These money get easily converted into cash.
Hence, time deposit is not included into m1 because it can not easily get converted into cash.
33. For something to be serve as money, it should be "all of the above".
The main features of money include (1) durability, (2) divisibility, (3) transportability that is
portability, and (4) noncounterfeitability that is its scarce nature as it can not be easily multiplied.
34. In simple terms, Liquidity is the feature of an asset that tells us about how fast that asset can
be converted into cash or cash equivalent.
Hence, it is option A "how fast at full market value an asset an be converted into means of
payment".
35. None of the above are included into M1 , M2 or M3 definition of money hence none of the
above is money.