Which of the Following Is Not True About M1

question 76

Multiple Choice

Which of the following is not true about M1?

• A)It includes the most liquid forms of money.
• B)It is the narrowest definition of the money supply.
• C)Savings accounts makes up approximately one-third of it.
• D)Currency in circulation makes up approximately half of it.

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Definitions:

Cash Collections

are the payments received by a company from its customers in exchange for goods or services sold on credit.

Cumulative Surplus

The total amount of net income that a company retains over its life, after distributing dividends to shareholders.

Minimum Cash Balance

Minimum Cash Balance is the lowest amount of cash that a company seeks to maintain in its accounts to ensure financial stability and meet immediate operational needs.

Credit Sales

Sales in which the customer is allowed to pay at a later date, typically used to increase sales volume.