Currency held by the public plus balances in transactions accounts plus travelers checks is the definition of

Question

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M1 includes currency held by the public, balances in transactions accounts (such as checking accounts), and travelers checks. Bank surplus and bank deficit refer to the financial position of individual banks and are not related to the definition of money aggregates. M2 includes M1 plus additional forms of savings deposits, such as money market accounts and CDs.

Currency Held by the Public Plus Balances in Transactions Accounts