The monetary aggregate, M1, increases when
A) an individual cashes a check written by a business.
B) an individual purchases clothes with a debit card.
C) an individual switches funds from a savings account to a checking account.
D) an individual buys groceries with a credit card.

Question

Quizplus · Accepted Answer

Switching funds from a savings account to a checking account increases M1, as M1 includes checking accounts but not savings accounts.

The Monetary Aggregate, M1, Increases When