The M1 measure of the money supply equals

Question

Quizplus · Accepted Answer

The M1 measure of the money supply includes currency, which is paper money and coins in circulation, and checking account balances, which are included in demand deposits. Traveler's checks are also included in M1 because they are treated like currency, meaning they can be easily converted into cash. However, savings account balances are not included in M1 because they are not as easily accessible for everyday transactions. Therefore, the correct answer is C- currency plus checking account balances plus traveler's checks.

The M1 Measure of the Money Supply Equals