1. High transactions volume during a normal stock market trading day reflects:
a. high transactions costs and low liquidity.
b. low transaction costs and low liquidity.
c. high transaction costs and high liquidity.
d. low transaction costs and high liquidity.
2. Tracking the growth rate of M1 to understand inflation has declined in importance because of:
a. the use of money market mutual funds and similar demand deposit substitutes.
b. the increased use of paper checks to make payments.
c. the increased use of electronic fund transfers.
d. a greater reliance on the use of currency.