Which of the Following Is Included in M₁

question 38

Multiple Choice

Which of the following is included in M₁?

• A) savings accounts
• B) money market deposit accounts
• C) money market mutual funds
• D) travelers' checks
• E) None of the above are included.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.

Current Liabilities

Short-term financial obligations that a company is required to pay within one year, such as accounts payable and short-term loans.

Current Assets

Current assets refer to the resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.

Profits

The financial gain realized when the revenue from business activities exceeds the expenses and costs.