Which of the following measures is the best measure of money as a medium of exchange?

Question

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M1 includes currency, demand deposits, and travelers checks, which are the most liquid and widely accepted forms of money. These components of M1 are used extensively in daily transactions and are therefore the best measures of money as a medium of exchange. M2 and M3 include less liquid forms of money such as savings deposits, which are not used as extensively in daily transactions. L is not a recognized measure of money.

Which of the Following Measures Is the Best Measure of Money