The Reason Why a Savings Account Is Not Considered a Component

question 40

True/False

The reason why a savings account is not considered a component of the M-1 money supply is that it bears interest.

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Definitions:

Straight Line

A method of calculating depreciation or amortization by spreading the cost evenly over the useful life of an asset.

MACRS

Modified Accelerated Cost Recovery System; a method of depreciation for tax purposes in the United States.

Depreciated

A decrease in the value of an asset over time due to wear and tear, obsolescence, or market conditions, often used for tax purposes.

Cash Inflow

The total amount of money being transferred into a business, from operations, financing or investing activities, over a specific period of time.