Which of the following is part of M1?
I. currency in a bank's vault
II. cash in your wallet
III. checkable deposits
IV. savings deposits
A) I, II, III, and IV
B) I, II, and III
C) II and III
D) II, III, and IV

Question

Quizplus · Accepted Answer

M1 includes currency in circulation (cash in your wallet) and checkable deposits, which are funds in a checking account that can be easily accessed with a debit card or written check. Currency held in a bank's vault is not considered part of M1 because it is not in circulation. Savings deposits are part of M2, which includes M1 plus other less liquid assets.

Which of the Following Is Part of M1