Saving Account Balances Are Included In

question 49

Multiple Choice

Saving account balances are included in:

• A) M2 only.
• B) M1 only.
• C) neither M1 nor M2.
• D) both M1 and M2.

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Definitions:

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Long-term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, or real estate, with the expectation of generating long-term benefits.

Accrued Interest

Interest that has been earned but not yet paid or received in cash.

Semiannual Interest

Interest calculated or paid twice a year on loans, bonds, or savings accounts.