The other checkable deposits component of the M1 measure reported by the Federal Reserve includes
A)negotiable time deposits.
B)money market mutual fund shares.
C)automatic transfer from savings accounts.
D)money market deposit accounts.

Question

Quizplus · Accepted Answer

The component of checkable deposits in M1 that includes automatic transfers from savings accounts is known as automatic transfer service (ATS) accounts. Therefore, the correct option is C as all other options are not included in checkable deposits. Choice A refers to time deposits and is not a part of checkable deposits. Choice B refers to money market mutual fund shares, which are not deposits at all. Choice D refers to money market deposit accounts, which may have limited check-writing capabilities but are not considered a part of checkable deposits.

The Other Checkable Deposits Component of the M1 Measure Reported