Refer to the following table to answer the following questions:
-Traveler's checks are
A) included in M1 but not M2.
B) considered a savings deposit.
C) not money.
D) part of M1 and M2.
E) considered a checkable deposit.

Question

Refer to the following table to answer the following questions: 
-Traveler's checks are
A) included in M1 but not M2. 
B) considered a savings deposit. 
C) not money. 
D) part of M1 and M2. 
E) considered a checkable deposit.

Quizplus · Accepted Answer

Traveler's checks are considered part of M1, which includes currency, demand deposits, and other liquid assets. M1 is a component of M2, so traveler’s checks are also part of M2.

Refer to the Following Table to Answer the Following Questions