Why are funds in a savings account NOT considered part of the M1 money supply?
A) The funds do not provide a store of value.
B) The funds are not measured in a standardized unit of measure.
C) The funds are too liquid.
D) The funds are not immediately spendable as a medium of exchange.

Question

Quizplus · Accepted Answer

Funds in a savings account are not immediately spendable as a medium of exchange, meaning they cannot be used directly to make purchases or payments. Therefore, they are not included in the definition of M1 money supply, which includes only the most liquid and spendable forms of money like cash and checking account deposits.

Why Are Funds in a Savings Account NOT Considered Part