Consider the Following Data from the Economy of Adanac

question 31

Multiple Choice

Consider the following data from the economy of Adanac:
• Currency outside banks: $15 billion
• Personal and non- personal chequable deposits: $40 billion
• Personal non- chequable deposits: $50 billion
• Non- personal non- chequable deposits: $125 billion
• Fixed term deposits: $200 billion
The value of MI is $_______ billion and the value of M2 is $_______ billion.

• A)55; 230
• B)55; 430
• C)110; 235
• D)105; 230
• E)60; 430

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Definitions:

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Objectivity Concept

An accounting principle that requires financial and accounting information to be independent and based on measurable and verifiable data.

Unit of Measure

A standard quantity used to express a physical quantity, ensuring uniformity in the reporting of financial and operational data.

Business Entity Concept

An accounting principle that treats a business as separate from its owners or shareholders for financial reporting purposes.