The reason why a savings account is not considered a component of the M-1 money supply is that it earns interest.

Name: The reason why a savings account is not considered a component of the M-1 money supply is that it earns interest.
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The reason a savings account is not considered a component of the M-1 money supply is because it is not as liquid as other forms of M-1 money, such as cash and checking accounts, not because it earns interest.

The Reason Why a Savings Account Is Not Considered a Component