Which One of the Following Is a Component of M2

question 49

Multiple Choice

Which one of the following is a component of M2 but not of M1?

• A)currency outside banks
• B)personal chequable deposits
• C)personal non-chequable deposits
• D)currency in a bank vault
• E)Canada Savings Bonds

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Definitions:

Depreciated

Refers to the reduction in the value of an asset over time due to wear and tear or obsolescence.

Tax Purposes

The rationale or reason behind actions taken or decisions made to minimize tax liability and ensure compliance with tax legislation.

EAC Method

Equivalent Annual Cost Method, a financial analysis technique used to compare the cost-effectiveness of different projects with diverse lifespans.

Economic Lives

The duration over which an asset is expected to be economically useful to its owner.