Which of the Following Is the Definition for the Real

question 77

Multiple Choice

Which of the following is the definition for the real supply of money?

• A) The ratio of real GDP to the nominal money supply.
• B) The actual quantity of money, rather than the officially reported quantity.
• C) The real value of currency in circulation only.
• D) The stock of money measured in terms of dollars.
• E) The stock of money measured in terms of goods, not dollars.

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Definitions:

Collection Delay

The lag between the time when a payment is made by a customer and when the funds are actually available for use by the recipient.

Average Daily Float

The average amount of time it takes for checks or other transactions to clear and be reflected in the available balance of an account.

Collection Delay

The period between when a sale is made and when the payment is actually received.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, enhancing the speed and security of transactions.