M1 Is Composed of

question 92

Multiple Choice

M1 is composed of

• A)currency held by individuals and businesses, traveler's checks, and checkable deposits owned by individuals and businesses.
• B)traveler's checks, credit cards, and e-cash.
• C)currency held by individuals and businesses, traveler's checks, and the credit line on credit cards.
• D)checkable deposits owned by individuals and businesses, saving deposits, and certificates of deposit.
• E)currency inside of banks, traveler's checks, and government-issued checks.

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Definitions:

Holding-Period Return

Holding-Period Return is the total return received from holding an asset or portfolio of assets over a period of time, factoring in both income and capital gains or losses.

Capital Gain Yield

The change in the price of a security or investment over time, not including dividends or interest earnings, usually expressed as a percentage.

Risk Premium

The additional return expected by an investor for holding a risky asset over a risk-free asset, compensating for the higher risk.