Which One of the Following Is the Largest Component of the Money

question 115

Multiple Choice

Which one of the following is the largest component of the money supply (M1) in the United States?

• A) Checkable deposits.
• B) Gold certificates.
• C) Credit cards and traveler's checks.
• D) Federal Reserve notes.

---

Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the company’s shareholders’ equity account.

Note Payable

A financial obligation in the form of a written promissory note that specifies the principal amount, interest rate, and due date.

Net Income

A company's final earnings following the deduction of all expenses and taxes from its revenues.

Net Cash Flow

The difference between cash inflows and outflows in a given period, indicating the liquidity position of a business.