Currency in Circulation Is Included in

question 35

Multiple Choice

Currency in circulation is included in

• A)M1 only.
• B)M2 only.
• C)Both M1 and M2.
• D)None of the choices are correct.

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Definitions:

Transactions

The exchanges or transfers of goods, services, or funds that result in changes to the financial position of a business.

Journalize

The process of recording financial transactions in a company's journal, marking the first step in the accounting cycle.

Fiscal Year

A 12-month period that companies use for accounting purposes and preparing financial reports, which may or may not align with the calendar year.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.