One major component of money supply M1 is part of a bank's
A) assets.
B) reserves.
C) liabilities.
D) net worth.

Name: One major component of money supply M1 is part of a bank's A) assets. B) reserves. C) liabilities. D) net worth.
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Question

Quizplus · Accepted Answer

The major component of money supply M1 is currency in circulation and demand deposits. Demand deposits are liabilities of banks, which means the banks owe that money to their depositors. Therefore, the correct answer is C, liabilities.

One Major Component of Money Supply M1 Is Part of a Bank's