Which of the Following Items Is Included in the M1

question 179

Multiple Choice

Which of the following items is included in the M1 money supply?

• A)$10 bills in the Bank of America
• B)a $5,000 student loan granted to a U.S.citizen
• C)coins in a Pepsi vending machine,waiting to be used as change
• D)a $5,000 line of credit on a newly graduated student's credit card
• E)$1,500 in a student's saving account

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Definitions:

Preincorporation Contracts

Agreements entered into on behalf of a corporation before it is legally formed, for which the corporation may later assume liability.

Promoter

An individual or company responsible for organizing and financing the initial operations of a business venture or organizing events, often taking significant financial risks.

Incorporation

The process of legally declaring a corporate entity as separate from its owners, providing protection from personal liability and other benefits.

Accounting Services

Professional services involving the management of financial records, including bookkeeping, auditing, and preparation of financial reports.