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Purpose of Materiality Judgments and Common Benchmarks and Thresholds

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Purpose of Materiality Judgments and Common Benchmarks and Thresholds
What are the key aspects in materiality judgments? Explain the purpose of materiality judgments,common benchmarks,and thresholds.


Definitions:

M2

M2 refers to a measure of the money supply that includes cash, checking deposits, and easily convertible near money.

M3

A measure of the money supply that includes M2 plus large time deposits, institutional money market funds, and other large liquid assets.

Money Supply

The broad total of financial assets available in an economy at a specified moment.

Gold

A precious metal used as an investment, a currency hedge, and in various industrial applications, valued for its rarity and physical properties.

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