Currency equals:
A) M1.
B) the sum of funds in checking accounts.
C) the sum of checking accounts and paper money.
D) the sum of coins and paper money.

Question

Quizplus · Accepted Answer

Currency refers to the physical form of money in circulation, which includes both coins and paper money. M1 refers to the most liquid type of money, which includes currency as well as funds in checking accounts. Therefore, option D is the best choice as it properly identifies currency as the sum of coins and paper money.

Currency Equals