Which of the Following Is Not a Component of M1

question 131

Multiple Choice

Which of the following is not a component of M1?

• A) currency held outside banks
• B) traveler's checks
• C) savings deposits
• D) checkable deposits

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Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash due to their highly liquid nature, typically including stocks and bonds.

Operating Activities

Activities that pertain to the day-to-day operations of a business, generating revenue and incurring expenses through its core business operations.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, such as issuing debt or equity.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.