The money aggregate M1 consists of
A) currency and savings accounts.
B) currency and checking deposits, including traveler's checks.
C) only checking deposits and time deposits.
D) checking accounts, savings accounts and Treasury bills.

Question

Quizplus · Accepted Answer

M1 includes currency (notes and coins in circulation) and checking deposits, including traveler's checks. Savings accounts, time deposits, and Treasury bills are not part of M1; they are considered in broader money aggregates like M2 and M3.

The Money Aggregate M1 Consists of