The Cash You Have in Your Wallet Would Be Counted

question 49

Multiple Choice

The cash you have in your wallet would be counted in which measure of money?

• A) Hard money
• B) M1
• C) M2
• D) It would be counted in all of these

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Definitions:

Target Cash Balance

The optimal level of cash a company aims to maintain to manage daily operations and accommodate unexpected expenses or investment opportunities.

Cash Flow Uncertainty

The unpredictability regarding the amounts and timing of cash flows into or out of a business.

Marketable Securities

Short-term financial instruments that are easily convertible into cash, such as government bonds or certificates of deposit.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.