Which of the Following Is Included in M2 but Not

question 71

Multiple Choice

Which of the following is included in M2 but not in M1?

• A)demand deposits
• B)corporate bonds
• C)large time deposits
• D)money market mutual funds

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Definitions:

Variable Cost

Costs that vary directly with the level of production or the volume of services provided.

Inventories

The raw materials, work-in-process products, and finished goods that a company holds for the purpose of sale in the near future.

Manufacturing Firms

Companies that produce goods using raw materials and various processes and machinery, often involving large-scale production.