Multiple Select QuestionSelect all that applyWhich of the following are components of M1?Multiple select question.Savings deposits including money market deposit accountsAll demand (chequable) depositsMoney market mutual fundsCurrency in the hands of the public
Question
Multiple Select QuestionSelect all that applyWhich of the following are components of M1?Multiple select question.Savings deposits including money market deposit accountsAll demand (chequable) depositsMoney market mutual fundsCurrency in the hands of the public
Solution
The components of M1, which is a measure of the money supply that includes physical currency and coin, demand deposits, travelers checks, and other checkable deposits, are:
- All demand (chequable) deposits
- Currency in the hands of the public
Savings deposits including money market deposit accounts and Money market mutual funds are not considered part of M1. They are part of M2 or M3.
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