Question

If you were given the task of totalling all the M1 money in circulation in the US, which of the following would you include in your calculations?

a. Demand deposits and other checking accounts
b. Currency
c. Savings accounts

Answer 1

Answer:

A

B

Explanation:

M1 is the most liquid definition of money. M1 includes currency and coin, demand deposits, travellers' checks, other checkable deposits

Savings account is part of M2