M1 Includes

question 25

Multiple Choice

M1 includes:

• A)currency plus demand deposits in banks.
• B)currency plus demand deposits in Australian-owned banks only.
• C)currency plus all banks and non-bank financial institution deposits.
• D)currency plus all deposits in Australian- and foreign-owned banks.

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Definitions:

Variable Life

A type of lifelong insurance policy where both the cash value and the death benefit fluctuate according to the results of investments selected by the person holding the policy.

Investment Alternatives

Various options available to investors for putting their money, including stocks, bonds, real estate, or commodities.

Fixed Returns

Refers to the predetermined earnings from an investment, typically associated with bonds or other fixed-income investments, which provide regular interest payments.

Variable Returns

Variable returns refer to earnings from an investment that are not fixed and can vary greatly over time, often seen in stocks, bonds, and mutual funds due to market conditions.