Checking Deposit Are ______ the M1 Measure of Money and ______

question 20

Multiple Choice

Checking deposit are ______ the M1 measure of money and ______ the M2 measure of money.

• A) included in; excluded from
• B) included in; included in
• C) excluded from; excluded from
• D) excluded from; included in

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Definitions:

Technical Insolvency

A situation where an entity cannot meet its short-term financial obligations despite having sufficient assets.

Interest Payments

Payments made to lenders or bondholders as compensation for lending funds, calculated as a percentage of the principal.

Long-Term Bonds

Bonds that have a maturity period typically longer than ten years, offering steady interest income over a long duration.