(Table: Money Measure Components, June 2010) Based on the Table $\text {Money Measure Components, June 2010}$

question 136

Multiple Choice

(Table: Money Measure Components, June 2010) Based on the table, M1 for June 2010 was: $\text {Money Measure Components, June 2010}$
$\begin{array} { l c } \text { Money Component } & \text { Amount (\$ billions) } \\ \text { Currency } & 883.6 \\ \text { Traveler's checks } & 4.8 \\ \text { Demand deposits } & 467.0 \\ \text { Savings deposits } & 5,086.1 \\ \text { Small-denomination time deposits } & 1,054.0 \\ \text { Other checkable deposits } & 382.0 \\ \text { Retail money funds* } & 746.6 \end{array}$
$\text {*Includes money market accounts and money market mutual fund accounts}$

• A) $1,737.4 billion.
• B) $1,355.4 billion.
• C) $1,350.6 billion.
• D) $1,732.6 billion.

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Definitions:

Capital Rationing

The process of selecting the best projects for investment under conditions of limited resources, ensuring optimal utilization of capital.

Negative NPVs

Situations where the Net Present Value of an investment is less than zero, indicating that the project’s projected earnings, discounted back to the present value, are less than the initial investment, suggesting it may not be profitable.

Positive NPVs

Situations where the Net Present Value of an investment or project is greater than zero, indicating profitability.

Small Firms

Companies with a relatively small market capitalization, often characterized by fewer employees and lower revenues compared to larger corporations.