Question

Either a member of management or customer service manager must approve checks written for $100.00 to $249.99; however only a member of management may approve checks written for $250.00 or more: True or False

Answer 1

The statement about the approval requirement for checks in a business process is true. Items b, c, and d from the list of assets are categorized as M1 money supply, item a is neither, and item e depends on the form the money is held in.

Step-by-step explanation:

To accurately address the approval process for checks within a given business, the statement is: True.

Now, exploring the concepts of M1 and M2 money supply, we can categorize each item from the list as follows:

• a. Your $5,000 line of credit on your Bank of America card - Neither. This is a form of credit and not part of the money supply.
• b. $50 dollars' worth of traveler's checks you have not used yet - M1. Traveler's checks are considered a part of M1 when owned by individuals.
• c. $1 in quarters in your pocket - M1. This is currency in circulation and is part of M1.
• d. $1200 in your checking account - M1. Checking accounts are included in M1.
• e. $2000 - This needs clarification. If it is $2000 in cash or in a checking account, it's M1; if it is in a savings account or money market mutual fund, it's M2; otherwise, if it's just a reference to value, it could be neither.