As a measure of money, M1 emphasizes the use of money as
A)an illiquid asset.
B)a unit of account.
C)a standard of deferred payment.
D)a medium of exchange.
E)a store of value.

Question

Quizplus · Accepted Answer

M1 includes the most liquid forms of money that can easily be used as a medium of exchange, such as currency, demand deposits, and traveler's checks. Therefore, M1 emphasizes the use of money as a medium of exchange.

As a Measure of Money, M1 Emphasizes the Use of Money