Which Statement About M2 Is Incorrect

question 6

Multiple Choice

Which statement about M2 is incorrect?

• A) M2 is a broader measure of money than M1.
• B) Small-denomination time deposits are part of M2.
• C) Near monies are more liquid than M1.
• D) Demand deposits are part of M2.

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Definitions:

Weighted-average Shares

A calculation used in financial reporting to compute the average number of shares outstanding during a period, adjusting for any stock splits or dividend issues.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.

Dividends Declared

A formal announcement by a company's board of directors to pay dividends to shareholders, specifying the amount and payment date.

Declaration Date

The date on which a company's board of directors announces the issuance of a dividend to its shareholders.