Currency held by the public plus balances in transactions accounts is the definition of

Question

Quizplus · Accepted Answer

M1 is the narrowest measure of the money supply and includes only the most liquid forms of money, such as currency held by the public and balances in transactions accounts (checking accounts and traveler's checks). Bank surplus and deficit are not related to the definition of the money supply. M2 is a broader measure of the money supply that includes M1 plus certain savings accounts and time deposits.

Currency Held by the Public Plus Balances in Transactions Accounts