Which One of the Following Is True

question 432

Multiple Choice

Which one of the following is true?

• A) Transaction deposits are counted in M2 but are not included in M1.
• B) Most of the U.S. currency in existence circulates outside U.S. borders.
• C) Traveler's checks are not considered to be money because they are not valid unless signed.
• D) Balances in money market deposit accounts are counted in M1 but are not included in M2.

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Definitions:

Largest Current Asset

Typically refers to the current asset in a company's balance sheet that represents the highest value, commonly either cash or accounts receivable.

Merchandiser

A business or person that sells goods to consumers, typically involved in purchasing, displaying, and selling of products.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or manufacturing.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of core operations.