Which of the Following Is Not Included in M1 or M2

question 46

Multiple Choice

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

• A) checking account balances
• B) currency in circulation outside of commercial banks
• C) traveler's checks
• D) credit card balances

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Definitions:

Compounded Monthly

The process of applying interest on both the initial principal and the accumulated interest each month.

Compounded Annually

A method where interest is added to the principal sum at the end of each year, compounding the amount for the next period.

Semi-Annually

Occurring twice a year or every six months, often used in the context of payments or interest calculations.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounding at the end of each period.