Depreciation ____

question 90

Multiple Choice

Depreciation ____.

• A) does not affect cash flows
• B) does not affect profits
• C) is not a cash outflow
• D) is a cash inflow

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Definitions:

M1

Refers to the physical money supply that includes coins and notes in circulation as well as non-bank public holdings of checkable deposits.

M2

Includes all elements of M1 along with near money, such as savings deposits, time deposits under $100,000, and non-institutional money market funds.

M1

This term identifies the core components of the money supply, focusing primarily on currency and liquid assets held by the public.

Trade Deficit

Occurs when a country's imports exceed its exports during a given time period, indicating that it is buying more foreign products than it is selling domestically.