31. Which monetary aggregate includes currency in circulation, demand deposits, and traveler’s checks?
a) M1
b) M2
c) M3
d) M4
Answer: a) M1
32. Which monetary aggregate includes M1, savings deposits, and small time deposits?
a) M1
b) M2
c) M3
d) M4
Answer: b) M2
33. Which monetary aggregate includes M2, money market mutual funds, and large time deposits?
a) M1
b) M2
c) M3
d) M4
Answer: c) M3
34. Which monetary aggregate includes M3, repurchase agreements, and Eurodollars?
a) M1
b) M2
c) M3
d) M4
Answer: d) M4
35. When the central bank increases the reserve requirement, what is likely to happen to the money supply?
a) It will decrease
b) It will increase
c) It will remain unchanged
d) It is not affected
Answer: a) It will decrease
