Answer the Question on the Basis of the Following List

question 104

Multiple Choice

Answer the question on the basis of the following list of assets: 1.Large-denominated ($100,000 and over) time deposits
2) Noncheckable savings deposits
3) Currency (coins and paper money) in circulation
4) Small-denominated (under $100,000) time deposits
5) Stock certificates
6) Checkable deposits
7) Money market deposit accounts
8) Money market mutual fund balances held by individuals
9) Money market mutual fund balances held by businesses
10) Currency held in bank vaults
Refer to the given list.The assets that are not included in either M1 or M2 are:

• A) Items 1,5,9,and 10.
• B) Items 2,5,8,and 9.
• C) Items 1,3,5,7,and 9.
• D) All of the ten items listed.

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Definitions:

Cash Flow Recovery

The process of regaining the cash that was used in investments or incurring costs, often evaluated in terms of investment payback period or returns.

Net Working Capital

A comparison of a company's short-term assets versus its short-term obligations, indicating its fiscal health in the immediate future.

Capital Cost Allowance (CCA)

A taxable expense in Canadian tax law that represents a yearly deduction for the depreciation of property used in a business or profession.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the near-term.