M1 Is a Measure of

question 393

Multiple Choice

M1 is a measure of

• A) money and includes both currency and checking deposits.
• B) liquidity and in which the most liquid asset is money.
• C) money and includes both savings deposits and currency.
• D) money and includes both savings deposits and money market mutual funds.

---

Definitions:

Loan Period

The duration over which a borrower is obligated to repay a loan, typically specified in months or years.

Ordinary Simple Interest

Interest calculated on the principal amount only, not on accrued interest over time.

360-Day Year

A simplified accounting method where each month is considered to have 30 days, resulting in a year total of 360 days, used in financial calculations.

Loan Period

The duration over which a borrower agrees to pay back a loan to the lender, typically expressed in months or years.