M1 is composed of
A) traveller's cheques, credit cards and e-cash.
B) currency inside of banks, traveller's cheques and government-issued cheques.
C) currency held by individuals and businesses and current account deposits owned by individuals and businesses.
D) current account deposits owned by individuals and businesses, saving deposits, and certificates of deposit.
E) currency held by individuals and businesses, traveller's cheques, and the credit line on credit cards.

Question

Quizplus · Accepted Answer

M1 typically includes currency held by individuals and businesses (notes and coins in circulation outside the bank vaults) and current account (or checking account) deposits. It represents the most liquid forms of money that are readily used for transactions.

M1 Is Composed of