Below is a list of financial assets:
1.Certificates of deposit
2.Notice deposits (savings accounts)
3.Currency (coins and paper money)
4.Demand deposits (chequing accounts)
5.Government securities
6.Gold certificates
-Refer to the information above to answer this question.Which item(s)is included in the M1 definition of money?

Question

Quizplus · Accepted Answer

M1 definition includes only the most liquid forms of money, which are currency and demand deposits. Notice deposits and certificates of deposit are less liquid, while government securities and gold certificates are not considered money at all by the M1 definition. Therefore, only option 3 (Currency) and option 4 (Demand deposits/chequing accounts) are included in the M1 definition of money.

Below Is a List of Financial Assets