Which one of the following is the largest component of the money supply (M1) in the United States?
A) checkable deposits
B) gold certificates
C) credit cards and traveler's checks
D) Federal Reserve notes

Question

Quizplus · Accepted Answer

Checkable deposits, also known as demand deposits, are the largest component of M1 in the United States. This includes deposits in checking accounts at banks and other depository institutions that can be withdrawn on demand, as well as other types of deposits that can be accessed via check or electronic transfer. The other options listed (gold certificates, credit cards and traveler's checks, and Federal Reserve notes) are not as significant in terms of their contribution to M1.

Which One of the Following Is the Largest Component of the Money