M1 Differs from M2 in That

question 107

Multiple Choice

M1 differs from M2 in that:

• A)M1 includes currency and balances held in checking accounts, which are not included in M2.
• B)M2 includes savings deposits, small-denomination time deposits, and money market mutual funds that are not included in M1.
• C)M1 is a broader measure of the money supply than M2.
• D)the assets in M2 are more liquid than the assets in M1.

Recognize the challenges and approaches in budget preparation for complex organizations.

Understand the role and impact of financial reporting and EPS on firms and market perceptions.

Comprehend the mechanisms and benefits of innovative securities in mortgage markets.

Identify and differentiate between various types of loan covenants and their purposes.

---

Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Corporate Opportunity

A business opportunity that a company has a legal interest in or right to, which an officer or director cannot take for their personal gain without breaching their fiduciary duty.

Conglomerate

A large corporation formed by the merger of separate and diverse firms, focusing on a wide range of business activities and markets.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.