Which money measure is helpful for understanding liquidity in the economy?
A) Monetary base
B) M1
C) M2
D) M3

Name: Which money measure is helpful for understanding liquidity in the economy? A) Monetary base B) M1 C) M2 D) M3
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Question

Quizplus · Accepted Answer

M1 includes the most liquid forms of money, such as currency in circulation and demand deposits. Therefore, it is a useful measure for understanding the availability of cash and ease of financial transactions in the economy.

Which Money Measure Is Helpful for Understanding Liquidity in the Economy