Which of the Following Is Included as Part of the M1

question 228

Multiple Choice

Which of the following is included as part of the M1 money supply?

• A) $200,000 balance in the checking account of Main Street Trading Corp.
• B) $200,000 in reserves held by Main Street Commercial Bank in its vaults
• C) $2 million balance in the checking account of the U.S. Treasury
• D) $200 million in the vaults of the Federal Reserve Banks

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Definitions:

Operating Expenses

Expenses incurred in the normal operation of a business, excluding the cost of goods sold.

Net Sales

This is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.

Net Sales

The revenue from sales after deducting returned goods, allowances for damaged or missing goods, and any discounts allowed.