M1 includes
A) currency plus demand deposits in banks.
B) currency plus demand deposits in Australian-owned banks only.
C) currency plus all bank and non-bank financial institution deposits.
D) currency plus all deposits in Australian- and foreign-owned banks.

Question

Quizplus · Accepted Answer

M1 is a measure of the money supply that includes currency (notes and coins) in circulation and demand deposits in banks. It does not include deposits held in non-bank financial institutions or foreign-owned banks, only Australian-owned banks. Therefore, option A is the best choice.

M1 Includes