The M1 money supply measure includes A. Currency held by the public.

Here's why:

M1 money supply is a country's basic money supply that's used as a medium of exchange. M1 includes demand deposits (checking accounts), traveler's checks, and other deposits against which checks can be written. It also includes physical forms of money like coins and currency held by the public.

So, savings deposits, time deposits, and money market funds are not included in M1. They are included in M2 and M3 money supply. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity. The exact definitions of M1, M2 and M3 vary from country to country.

Question

The M1 money supply measure includes A. Currency held by the public.

Here's why:

M1 money supply is a country's basic money supply that's used as a medium of exchange. M1 includes demand deposits (checking accounts), traveler's checks, and other deposits against which checks can be written. It also includes physical forms of money like coins and currency held by the public.

So, savings deposits, time deposits, and money market funds are not included in M1. They are included in M2 and M3 money supply. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity. The exact definitions of M1, M2 and M3 vary from country to country.

Knowee AI · Accepted Answer

The M1 money supply measure includes A. Currency held by the public.

Here's why:

M1 money supply is a country's basic money supply that's used as a medium of exchange. M1 includes demand deposits (checking accounts), traveler's checks, and other deposits against which checks can be written. It also includes physical forms of money like coins and currency held by the public.

So, savings deposits, time deposits, and money market funds are not included in M1. They are included in M2 and M3 money supply. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity. The exact definitions of M1, M2 and M3 vary from country to country.

Which of the following is included in the M1 money supply measure? A. Currency held by the public B. Savings deposits C. Time deposits D. Money market funds

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