M1 is equal to
A) currency plus small time deposits.
B) currency plus demand deposits plus savings deposits.
C) currency plus checkable deposits.
D) currency.

Question

Quizplus · Accepted Answer

M1 represents the most liquid forms of money, including currency (physical money) and checkable deposits (money held in checking accounts). Therefore, option C is the best choice as it includes both currency and checkable deposits. Options A and B do not include checkable deposits, while option D only includes currency.

M1 Is Equal to