A Basic Argument for Using the M1 Concept of Money

question 58

Multiple Choice

A basic argument for using the M1 concept of money is that:

• A)it includes all of the important financial assets that have any degree of liquidity.
• B)the government collects data for the components of M1, but does not do so for M2 and M2+.
• C)its components are superior to other financial assets as a store of value.
• D)its components are directly and immediately spendable.

---

Definitions:

Units Started

The number of units of product that have begun the production process but are not yet completed.

Units Accounted

The total count of units tracked in an inventory or production system, including those produced, sold, and currently in stock.

Ending Work

The value of goods that are still in production at the end of an accounting period, also known as work-in-process.

Unit Materials Cost

The cost directly associated with the raw materials used in the production of a single unit of a product.