The M2 Classification of Money Includes

question 145

Multiple Choice

The M2 classification of money includes:

• A) cash and checking account balances.
• B) hard money and savings account balances.
• C) cash, checking account, and savings account balances.
• D) cash, checking accounts, savings accounts, and other financial instruments where money is locked away for a specified period of time.

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Definitions:

Required Rate

The lowest rate of return necessary for an investment to be acceptable to an investor, given its risk and alternatives available.

Stock Worth

The market value of a company's shares; it is determined by the price at which a share of stock is bought and sold in the market.

Investor's Return

The profit or loss made on an investment, usually presented as a percentage of the investment's original cost.

Stock Price

The present cost at which a company's share is purchased or sold on the stock market.