Until 1933, the United States was on the gold standard, and people could receive gold from the
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Until 1933, the United States was on the gold standard, and people could receive gold from the federal government in exchange for their paper currency. Although the federal government is no longer willing to exchange paper currency for gold, the Federal Reserve still stores more than 500,000 gold bars in the basement of the New York Federal Reserve building in Manhattan. Are these gold bars included in either the M1 or M2 definition of the money supply? Briefly explain why they are, or are not, included.
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Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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