M3 Is Equal To

question 63

Multiple Choice

M3 is equal to:

• A) deposits with banks plus borrowings by non- bank financial intermediaries
• B) coins and notes held by the public
• C) currency, bank deposits and borrowings by non- bank financial intermediaries
• D) currency plus current deposits and other deposits with banks

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Definitions:

Cash

Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of an organization, including issuing shares, paying dividends, and borrowing or repaying loans.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Payments

Transactions made by individuals or entities to fulfill financial obligations, such as bills, salaries, or loans.