Checking Account Balances Are

question 175

Multiple Choice

Checking account balances are

• A) part of M1 but not part of M2.
• B) part of M1 and part of M2.
• C) part of M2 but not part of M1.
• D) not part of either M1 or M2.

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Definitions:

365-Day Year

A calendar basis used in various financial calculations, assuming the year consists of exactly 365 days for simplifying interest and other time-sensitive computations.

Temporary Working Capital

The additional working capital needed to support fluctuations in business activity during peak periods.

Short-Term Debt

Liabilities or loan obligations that are due to be paid within a year.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for goods or services sold on credit.