Chapter 14, Problem 8AA

To determine

To ascertain: The correct letter of the term which complete the definition of money in the given sentence.

Explanation of Solution

The correct answer is consists.

US money supply includes bills and coins provided by the System of Federal Reserve and the United States for currency dollars. Treasury and different forms of deposits kept publicly at commercial banks and other depository institutions, such as credit unions and thrifts. For almost all commercial transactions, money is used and has a significant influence on economic activity. The increase in money supply occurs by decreasing the interest rates, that stimulate spending, and by putting cash into consumers' pockets, that leads to an increase in purchasing power, and thereby increasing consumption.