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

Question

Quizplus · Accepted Answer

M1 refers to the narrowest definition of the money supply, which includes currency held by the public and balances in transactions accounts such as checking accounts. Bank surplus is the excess reserve held by a bank after meeting its reserve requirements, and M2 includes M1 plus certain types of savings accounts and time deposits.

Currency Held by the Public Plus Balances in Transactions Accounts