Which of the Following Statements Is Correct

question 19

Multiple Choice

Which of the following statements is correct?

• A)All items that are included in M1 are included also in M2.
• B)All items that are included in M2 are included also in M1.
• C)Credit cards are included in both M1 and M2.
• D)Savings deposits are included in both M1 and M2.

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Definitions:

Liquidation Proceeds

The funds that are received as a result of liquidating, or selling off, a company's assets, typically occurring during bankruptcy or when a company closes.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to tax.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Constant Growth

Constant growth refers to a situation where a quantity or system experiences growth at a steady and unvarying rate over a period of time, often used in dividend growth models.