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.

---

Definitions:

Analytical Method

A systematic approach in research and investigation to solve problems or interpret data.

Discounted Payback

A capital budgeting method that calculates the time required to recoup the cost of an investment, considering the time value of money.

Discount Rate

This interest rate is employed within the scope of DCF to ascertain the present valuation of future cash streams.

Initial Cash Outlay

The immediate amount of cash required to purchase an asset or start a project, often including the initial investment plus startup costs.