What money supply is equal to all currency held outside the bank, plus demand deposits, travelers' checks, and other deposits?
A)X2 money supply
B)Y1 money supply
C)M2 money supply
D)M1 money supply

Question

Quizplus · Accepted Answer

The M1 money supply is equal to all currency held outside the bank, plus demand deposits, travelers' checks, and other deposits.
Key Takeaway: M1, commonly referred to as "narrow money" consists of the most liquid forms of money, such as currency, deposits, coins, and travelers' checks. The other type of money, M2 or "broad money" includes all of M1 plus money market funds. The M2 money supply is also sometimes called "near money" because it is less liquid than the M1 supply.

What Money Supply Is Equal to All Currency Held Outside