Which of the Following Is Not a Component of the M1

question 20

Multiple Choice

Which of the following is not a component of the M1 money supply?

• A) demand deposits
• B) large-denomination (more than $100) bills
• C) interest-earning checking deposits
• D) outstanding balances on credit cards

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Definitions:

Direct Tax

is a type of tax directly imposed on individuals or entities, such as income tax and property tax, which cannot be passed onto others.

Payroll Tax

Charges levied on both employers and employees, typically based on a proportion of the wages that businesses distribute to their workers.

Wage Base

The maximum amount of earnings that is subjected to certain taxes, such as Social Security taxes, within a given time period.

Excise Tax

A tax charged on specific goods and services, such as alcohol and tobacco, usually to discourage their use or generate revenue.