Which of the Following Is Not Included in the Computation

question 22

Multiple Choice

Which of the following is not included in the computation of operating cash flow?

• A) Earnings before interest and taxes.
• B) Interest paid.
• C) Depreciation.
• D) Current taxes.

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Definitions:

Time Deposits

Banking or financial products that require the depositor to leave funds untouched for a pre-specified period of time in exchange for a higher interest rate.

Money Multiplier

The ratio of the change in the total money supply to the change in the monetary base, indicating how an initial deposit can lead to a greater final increase in the total money supply.

Reserve Banking

A banking system in which banks hold a fraction of their deposits as reserves, enabling them to meet withdrawal demands and extend credits.

Create Money

The process by which the central bank of a country (or other monetary authority) increases the money supply, often leading to the production of physical money or the creation of digital currency units.