The money aggregate M1 consists of
A) checking accounts, savings accounts and Treasury bills.
B) only demand deposits and time deposits.
C) currency and demand deposits, including traveler's checks.
D) currency and savings accounts.

Question

Quizplus · Accepted Answer

M1 includes the most liquid forms of money such as physical currency in circulation, demand deposits (checking accounts), and other accounts that can be easily converted to cash like traveler's checks. Savings accounts and Treasury bills are not included in M1.

The Money Aggregate M1 Consists of