The largest component of the M₁ money supply is A) coins B) Federal Reserve notes C) checking deposits D) certificates of deposit

Question

Quizplus · Accepted Answer

The largest component of the M₁ money supply, which refers to a broad measure of money supply including not just physical currency but also various types of deposits, is checking deposits. Checking deposits are widely used for daily transactions and represent a significant portion of the money supply, making them larger than physical currency (coins and Federal Reserve notes) and time deposits like certificates of deposit.

The Largest Component of the M1 Money Supply Is

The Largest Component of the M₁ Money Supply Is