When we add up currency,demand deposits,other checkable deposits,and travelers checks,we get
A) the money supply,as universally defined by economists.
B) the totality of common stores of value in the United States.
C) M1.
D) M2.

Question

Quizplus · Accepted Answer

Currency, demand deposits, other checkable deposits, and traveler's checks are all components of M1, which is a narrowly defined measure of the money supply. While there are other measures of the money supply that include additional types of accounts, M1 is the most commonly used and recognized measure. Therefore, the correct answer is C, M1.

When We Add Up Currency,demand Deposits,other Checkable Deposits,and Travelers Checks,we