Comparing M1 and M2 We Know That

question 344

Multiple Choice

Comparing M1 and M2 we know that

• A) M1 is larger because it contains currency.
• B) M2 is larger because it contains M1 and other assets.
• C) M2 is larger because it contains more liquid assets than does M1.
• D) M2 is approximately equal to M1.

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Definitions:

Distribution Channels

Paths or routes through which goods or services pass from the manufacturer to the consumer or end-user.

Inventory Control

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it.

Physical Distribution

All the activities necessary to move products from producers to customers—inventory control, transportation, warehousing, and materials handling.