All categories

3 years ago

M1 and M2 are two definitions of the money supply.

Business

1 answer:

Alex787 [66]3 years ago

5 0

Answer: Please refer to Explanation

Explanation:

M1 is the narrowest definition of money supply. It refers to the most liquid or instruments and includes actual currency as well as money in checking accounts.

M2 is the next type of of money. It includes EVERYTHING in M1 and then also includes savings deposits, time deposits, and money market funds.

Now,

Classifying the above will go as,

Gold - Neither M1 or M2

Traveler's check - M1 and M2

Balance in savings accounts - M2 only

Money market account balance - M2 only

Credit cards - Neither M1 or M2

Common stock - Neither M1 or M2

Certificates of deposit - M2 only

Currency - M1 and M2

Balance in Checking accounts - M1 and M2

It is worthy of note that there is no M1 only. This is because as stated in the definition, all M1s are in M2.

You might be interested in

Divine Apparel has 3,900 shares of common stock outstanding. On October 1, the company declares a $0.50 per share dividend to st

Afina-wow [57]

Answer:

1. October 1

Dividends (Cr) 1950

Dividend Payable (Dt) 1950

2. October 15

No journal entry required

3. Record the payment of cash dividends

Dividend Payable (Cr) 1950

Cash (Dt) 1950

Explanation:

(<em>3,900 shares of common stock outstanding</em>) *(<em>declared $0.50 per share dividend</em>) = 1950

3 0

3 years ago

If the expected long-run growth rate for this stock is free cash flow during the just-ended year (t = 0) was $120 million, and F

Pani-rosa [81]

Answer:

Firm value in millions 1,605‬ (one thousand six houndred five milllions)

Explanation:

To evaluate a firm based on the free cash flow we do a procedure similar to gordon dividend grow model

$\frac{divends_1}{return-growth} = Intrinsic \: Value$

We are going to replace dividend for the free cash flow

and the return for the WACC

notice we are given with the current FCF and for the gordon model we require dividend for the next year. (time=1)

here we need the same

FCF x (1+g) = 120 x (1 + 0.07) = 128.4

WACC .15

grow 0.07

$\frac{128.4}{.15-.07} = $Firm Value$

Firm value in millions 1,605‬ (one thousand six houndred five milllions)

8 0

4 years ago

What is straight ticket?

allsm [11]

A Straight Ticket is a ballot on which all votes have been cast for candidates of the same party.

3 0

3 years ago

On September 1, 2020, Concord Corporation acquired Skysong Enterprises for a cash payment of $790,000. At the time of purchase,

sladkih [1.3K]

Answer:

$710,000

Explanation:

For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = The fair value of Skysongâs assets - the fair value of liabilities

= $890,000 - $180,000

= $710,000

And, the acquired value of Skysong Enterprises for cash is $790,000

So, the goodwill would be

= $790,000 - $710,000

= $80,000

5 0

3 years ago

The measure of profit reported on a multiple-step income statement that represents the primary-revenue generating activities of

hodyreva [135]

Answer:

D. Operating income

Explanation:

Multiple-step Income statement shows separately Income generated from Primary Activities and that including secondary Activities.

Profit Reported from Primary Activities (including Selling and Administrative expenses ) is known as Operating Income. Whilst Profit including Finance Costs and other Secondary Incomes and expenses is called Net Income.

8 0

3 years ago