Which of the following items is not included in the most narrow definition of money,M1?
A)currency
B)savings deposits
C)traveler's checks
D)demand deposits

Question

Quizplus · Accepted Answer

M1 includes only the most liquid forms of money, such as physical currency and demand deposits (checking accounts). Savings deposits are not included in M1 because they are considered less liquid, making it difficult to use them for immediate spending. Traveler's checks and currency are both included in M1 as they are also highly liquid forms of money.

Which of the Following Items Is Not Included in the Most