M1 is equal to currency plus:
A) checkable deposits.
B) total reserves held at the Federal Reserve.
C) savings deposits.
D) small-time deposits.

Question

Quizplus · Accepted Answer

M1 includes currency in circulation and checkable deposits, which are funds held in checking and other types of transaction accounts that can easily be accessed with a debit card or written check. Total reserves held at the Federal Reserve (B), savings deposits (C), and small-time deposits (D) are not included in M1.

M1 Is Equal to Currency Plus