Which of the Following Is True

question 16

Multiple Choice

Which of the following is true?

• A)​Checking account deposits and time deposits constitute assets of banks.
• B)​M2 includes M1, plus saving accounts, time deposits (except for some large-denomination certificates of deposits), and money market mutual funds.
• C)​reserves times the required reserve ratio equals deposits.
• D)​Money is destroyed when banks make loans.

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Definitions:

Variable Selling Costs

Expenses that change in proportion to the volume of sales, such as commissions and shipping costs.

Sales Forecasts

Projections of future sales revenue, based on market analysis, historical data, and other estimations.

Actual Costs

The real costs incurred in the production of goods or services, including all direct and indirect expenses.

Inefficient Divisions

Parts of an organization that operate with lower productivity or effectiveness compared to expected standards.