Which Statement Is TRUE

question 61

Multiple Choice

Which statement is TRUE?

• A) M2 includes the gold stock but not M1+.
• B) M2+ includes M2.
• C) The gold stock backs M2 but not M1+.
• D) M1+ includes M2 but not the gold stock.

---

Definitions:

Stockholders

Stockholders, also known as shareholders, are individuals or entities that own one or more shares of stock in a public or private corporation, giving them partial ownership of the company.

Stock Dividends

A distribution by a company to its stockholders in the form of extra shares, instead of monetary compensation.

Cash Dividend

A monetary payment paid to shareholders, typically out of the corporation's current earnings or accumulated profits.

Capital Budgeting

The process a business undertakes to evaluate potential major investments or expenditures to ensure profitability.