The Reason Why a Savings Account Is Not Considered a Component

question 26

True/False

The reason why a savings account is not considered a component of the M-1 money supply is that it earns interest.

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Definitions:

Criterion Measure

A standard or benchmark against which the validity of a test score or the performance of an individual can be evaluated.

Grade Point Average

A numerical calculation representing the average value of the accumulated final grades earned in courses over time.

Item Analysis

A series of statistical tests and procedures that can be used to assess for homogeneity in a test.

Construct Validity

The degree to which a test accurately measures the theoretical construct or concept it is intended to measure.