Which of the Following Is Included in M1 and M2

question 8

Multiple Choice

Which of the following is included in M1 and M2?

• A)traveler's checks
• B)savings deposits
• C)money market mutual funds
• D)small time deposits

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Definitions:

Forward Contract

A forward contract is a customized financial agreement between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Payoff Profile

A payoff profile is a graphical representation showing the potential profit or loss of an investment strategy at various prices of the underlying asset at expiration.

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a set timeframe.