Which of the following is part of M1?
I. currency in a bank's vault
II. cash in your wallet
III. checkable deposits
IV. traveler's checks
A) I, II, III, and IV
B) I, II, and III
C) II and III
D) II, III, and IV

Question

Which of the following is part of M1? 
I. currency in a bank's vault
II. cash in your wallet
III. checkable deposits
IV. traveler's checks
A) I, II, III, and IV
B) I, II, and III
C) II and III
D) II, III, and IV

Quizplus · Accepted Answer

M1 includes cash in your wallet (II), checkable deposits (III), and traveler's checks (IV). Currency in a bank's vault (I) is not part of M1 as it is not in circulation.

Which of the Following Is Part of M1