The largest proportion of M1 is made up of
A)currency.
B)checking account deposits.
C)traveler's checks.
D)savings account deposits.
E)time deposits.

Question

Quizplus · Accepted Answer

M1 includes the most liquid forms of money, and the largest proportion of it is made up of checking account deposits, which are easily accessible and can be used for transactions. Currency and traveler's checks also make up a significant portion of M1, while savings account deposits and time deposits are less liquid and therefore are not included in M1.

The Largest Proportion of M1 Is Made Up of