M1 Includes Which of the Following

question 129

Multiple Choice

M1 includes which of the following?

• A)Time deposits
• B)Checking account deposits
• C)Gold certificates
• D)Money market mutual funds

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Definitions:

Compensating Balance

A minimum bank balance that a borrower must maintain as a condition for obtaining a loan, often used to compensate banks for the loan services.

Effective Interest Rate

The real interest rate on a loan or financial product, accounting for the effect of compounding over a given period.

Minimum

The lowest possible amount, quantity, or degree achievable or permissible.

Gross Working Capital

The total of all current assets in a company, which includes items such as cash, inventory, and accounts receivable.