Checking accounts are counted as part of
A) M1 only.
B) M2 only.
C) M1 and M2.
D) M2 and near money only.

Question

Quizplus · Accepted Answer

Checking accounts are part of both M1 and M2 money supply measures. M1 includes only the most immediately available and liquid forms of money, including physical currency and demand deposits (checking accounts), while M2 includes M1 plus slightly less liquid forms of money, such as savings accounts and small time deposits.

Checking Accounts Are Counted as Part of