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What Is One of the Basic Reasons for Focusing on the M1

Question 33

Multiple Choice

What is one of the basic reasons for focusing on the M1 definition of money?


A) Only the components of M1 are regarded as liquid.
B) Statistics Canada is able to gather data for the components of M1,but cannot do so for M2 and M3.
C) Only the components of M1 can be used as a store of wealth.
D) Its components all have direct and immediate control over goods and services.
E) Only the components of M1 are regarded as secure and are able to retain their value.

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