Which of these is included in M1?
A) savings deposits
B) large-denomination certificates of deposit
C) demand deposits
D) deposits in money market accounts

Question

Quizplus · Accepted Answer

M1 includes only the most liquid forms of money, which are the types of money that can be easily and quickly converted into cash. Demand deposits, also known as checking account deposits, are included in M1 because they can be accessed and used immediately for transactions. Savings deposits, large-denomination certificates of deposit, and deposits in money market accounts are all less liquid and therefore not included in M1.

Which of These Is Included in M1