The M1 money supply is defined as the sum of currency, traveller's cheques and:
A) cheque account deposits.
B) Treasury bonds.
C) savings accounts.
D) long-time deposits.

Question

Quizplus · Accepted Answer

The M1 money supply includes currency (physical money), traveller's cheques, and cheque account deposits. Savings accounts and long-time deposits are not included in M1 as they are generally less liquid and do not function as a medium of exchange in the same way as currency or cheque account deposits. Treasury bonds are also not included in M1, as they are not considered "money" in the traditional sense - they are debt instruments that can be traded on financial markets.

The M1 Money Supply Is Defined as the Sum of Currency