Near Money Includes

question 94

Multiple Choice

Near money includes:

• A) some of M2 and some of M1.
• B) some of M2 but none of M1.
• C) only the money in M3 that is no longer collected.
• D) hard assets such as land.

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Definitions:

Capital Lease

A lease classified by lessees as an asset purchase, indicating that the lessee effectively has control over the asset during the lease term.

Interest Revenue

Income earned from deposit accounts or investments through the interest paid by the borrower to the lender.

Incremental Borrowing Rate

The interest rate a lessee would have to pay if borrowing over a similar term, and with similar security, the funds necessary to lease or purchase an asset.