The money supply (M1)includes currency held by the public plus

Question

Quizplus · Accepted Answer

M1 includes currency held by the public (physical money) and transaction accounts (checking accounts, traveler's checks, and other accounts that allow for unlimited checking and withdrawals). Balances in savings accounts and money market mutual funds are part of M2, a broader measure of the money supply that includes M1 plus other forms of near money. Currency held by the Fed and Treasury is not considered part of the money supply.

The Money Supply (M1)includes Currency Held by the Public Plus