Checks and credit cards are NOT considered part of M1 because
A) both are liquid components of M2.
B) not everyone has a checking account or a credit card.
C) they are issued by banks.
D) they are not the means of payment to transfer funds; currency or funds in your checking account are the means of payment.

Question

Quizplus · Accepted Answer

Checks and credit cards are not considered part of M1 because they are not the means of payment to transfer funds; currency or funds in your checking account are the means of payment.

Checks and Credit Cards Are NOT Considered Part of M1