Which of the following is contained in the M-1 measurement of the money supply?
A) The number of new automobiles produced in the nation
B) Currency and demand deposits
C) Credit card cash advances
D) The number of new homes started in the month
E) Time deposits

Question

Quizplus · Accepted Answer

M-1 includes the most liquid forms of money, such as currency and demand deposits that are immediately accessible for spending. Options A, D, and E are not part of M-1, and option C refers to a type of borrowing, rather than a form of money.

Which of the Following Is Contained in the M-1 Measurement