Which asset is part of M1?

Question

Quizplus · Accepted Answer

Checkable bank deposits are included in M1, which measures the most liquid forms of money that people use for transactions. Short-term certificates of deposit are part of M2, a broader measure of the money supply that includes M1 as well as some less liquid forms of money. Shares of corporate stock are not considered money or part of the money supply. While currency in a bank's vault is a physical form of money, it is not included in the definition of M1 because it is not accessible for transactions.

Which Asset Is Part of M1