Which of the following would most likely NOT be included in the liquidity approach to defining the money supply?
A) savings deposits
B) money market mutual fund accounts
C) government bonds
D) traveler's checks

Question

Quizplus · Accepted Answer

The liquidity approach focuses on including only highly liquid assets that can be readily converted into cash. Savings deposits, money market mutual fund accounts, and traveler's checks are all highly liquid forms of money that could be included. However, government bonds are less liquid and would be less likely to be included in the money supply under the liquidity approach.

Which of the Following Would Most Likely NOT Be Included