Which of the following is contained in the M-1 measurement of the money supply?
A) The number of new automobiles produced in the nation in the previous month
B) The number of new homes started in the month
C) Time deposits
D) Credit card balances
E) Cash and the money in chequing accounts

Question

Quizplus · Accepted Answer

M-1 includes cash and the money in checking accounts, which are the most liquid forms of money that can be easily used for transactions. Options A and B are unrelated to the measurement of the money supply, while options C and D are part of the broader M-2 measurement.

Which of the Following Is Contained in the M-1 Measurement