Final answer:
A Monetary Instrument Log (MIL) records financial transactions involving payment instruments like checks, not tracking work hours, managing inventory, or monitoring employee productivity. It is crucial in the financial sector for compliance and monitoring. Money is measured by M1 and M2, which include liquid and less liquid financial assets.
Step-by-step explanation:
The Monetary Instrument Log (MIL) is a record that tracks financial transactions involving various payment instruments such as checks. This log is primarily used to record and monitor transactions for compliance, audit, and reporting purposes, especially within the financial sector. The correct answer to the question is 'b. Records financial transactions involving instruments like checks'.
Money is utilized in society for the purchase and sale of goods and services, either as commodity money with intrinsic value or as fiat money, which is government-declared legal tender. We measure money in different ways. M1 includes currency, demand deposits, and to some extent, traveler's checks. M2 encompasses all of M1 in addition to savings deposits, time deposits, and money market funds.
The role of banks here is significant, as they handle the various transactions that are recorded in the MIL as well as manipulate the different forms of money, from liquid currency to less liquid time deposits.