Which of the Following Is Not a Component of M1

question 131

Multiple Choice

Which of the following is not a component of M1?

• A) currency held outside banks
• B) traveler's checks
• C) savings deposits
• D) checkable deposits

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Definitions:

Machine-hours

A measure of the time that machines are operating, often used as a basis for allocating manufacturing overhead costs.

Direct Materials Cost

The cost of raw materials and components that are directly used in the production of a product.

Direct Labor-hours

Direct labor-hours are the total time workers spend on producing a particular unit of goods or services.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base, such as labor hours or machine hours.