The definition of money supply only includes money that is quickly and easily accessed.

Question

Quizplus · Accepted Answer

M-1 includes only the most liquid forms of money that can be accessed quickly and easily, such as physical currency, traveler's checks, and checking account balances. E-cash (A) refers specifically to electronic forms of currency, but may not necessarily be included in M-1 if it cannot be easily accessed or converted to physical currency. M-2 and M-3 (B and C) include less liquid forms of money, such as savings deposits and money market accounts, which cannot be accessed as quickly or easily as M-1 components.

The Definition of Money Supply Only Includes Money That Is