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Which of the Following Statements About the M1 Money Supply

Question 141

Multiple Choice

Which of the following statements about the M1 money supply is true?


A) The largest component of the money supply is currency, but demand deposits are also important.
B) Coins and paper money are issued by the U.S. Treasury, while demand deposit accounts are held in Federal Reserve Banks.
C) The largest component of the money supply is other checkable deposits, but demand deposits are growing in importance.
D) Other checkable deposits were the largest component of the money supply until demand deposits were introduced in the 1980s.

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