Refer to the following table to answer the following questions:
-In a fiat money economy,M1 includes currency as well as
A) certificates of deposit.
B) money market mutual funds.
C) checkable deposits.
D) savings deposits.
E) gold holdings.

Question

Refer to the following table to answer the following questions: 
-In a fiat money economy,M1 includes currency as well as
A) certificates of deposit. 
B) money market mutual funds. 
C) checkable deposits. 
D) savings deposits. 
E) gold holdings.

Quizplus · Accepted Answer

M1 includes currency and checkable deposits, which are the most liquid forms of money. Certificates of deposit, money market mutual funds, savings deposits, and gold holdings are not considered part of M1 because they are either less liquid or not directly spendable.

Refer to the Following Table to Answer the Following Questions