Which of the Following Items Is Included in the M1

question 13

Multiple Choice

Which of the following items is included in the M1 money supply?

• A) A credit card with a $5,000 limit.
• B) Coins in a vending machine, waiting to be used as change.
• C) $50 notes held at a Westpac branch.
• D) $1,500 in a fixed-term savings account.
• E) A $5,000 student loan granted to an Australian citizen.

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Definitions:

Physical Substance

A characteristic of certain assets that possess material existence and can be seen, touched, or quantified.

Ownership

The legal right or state of having control and possession over something, such as property or a company.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and discounts.