Savings Deposits and Time Deposits Are Not Included in M1

question 121

True/False

Savings deposits and time deposits are not included in M1 because these are not held by the nonbanking public.

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Definitions:

Profit

The financial gain achieved when the revenues earned from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Personally Liable

The state of being legally responsible for one's actions on an individual basis, which can result in personal financial liability.

Partnership

A form of business conduct legally established among at least two partners with shared responsibilities and profit distribution.

Debts

Money owed by one party to another under an agreement that the amount will be paid back, often with interest, by a certain date.