Use the Following to Answer Questions: Table: the Definition of the Money

question 81

Multiple Choice

Use the following to answer questions: Table: The Definition of the Money Supply $$\begin{array} { l c } \hline \text { Type of money } & \text { Amount (millions) } \\\hline \text { Currency and reserves held by banks at the Fed } & \$ 50 \\\text { Currency held by the public } & \$ 100 \\\text { Checkable deposits } & \$ 250 \\\text { Savings deposits } & \$ 150 \\\text { Money market mutual funds } & \$ 25 \\\text { Small time deposits } & \$ 10 \\\hline\end{array}$$
-(Table: The Definition of the Money Supply) Refer to the table. What is the M2 money supply?

• A) $400 million
• B) $550 million
• C) $535 million
• D) $585 million

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Definitions:

Sustainable Rate Of Growth

The maximum rate at which a company can grow its sales and earnings without increasing its financial leverage or debt.

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's earnings that are not paid out as dividends but are reinvested back into the business.

Profit Margin

A financial metric that measures the percentage of revenue remaining after deducting all expenses, indicating the efficiency and profitability of a company's operations.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing debt or equity financing.