As of December 2010, the Largest Single Component of M₂

question 127

Multiple Choice

As of December 2010, the largest single component of M₂ consists of

• A)checkable deposits at banks.
• B)cash, coins, and other currency.
• C)savings deposits.
• D)gold and silver in commodity accounts.

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Definitions:

Cash Dividend

A disbursement issued to shareholders from a firm's profits, often in cash format.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders’ equity at a specific point in time, providing a snapshot of the firm's financial condition.

Direct Method

A technique used in cash flow statements to show actual cash inflows and outflows from operating activities, as opposed to the indirect method.

Accounts Receivable

The funds that a company's customers have yet to pay for products or services they have received but have not settled the bill for.