Use the Following List to Answer the Question About the Money

question 36

Multiple Choice

Use the following list to answer the question about the money supply. Items
1) Money market mutual funds held by individuals
2) Savings deposits, including money market deposit accounts
3) Money market mutual funds held by businesses
4) Currency held by the public
5) Small time deposits
6) Checkable deposits
Refer to the list above. The M2 money supply is composed of items:

• A) 1, 2, 3, 4, 5, and 6
• B) 1, 2, 4, 5, and 6
• C) 1, 2, 4, and 6
• D) 2, 4, 5, and 6

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Definitions:

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used, but not yet paid for.

Source of Cash

Various origins from where a company or individual receives cash, including operations, financing activities, investments, and external funding.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity and operational efficiency.