In the United States, the money supply (M1) is comprised of:

BANKING GENERAL KNOWLEDGE

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	coins, paper currency, and checkable deposits
B	. currency, checkable deposits, and Series E bonds
C	coins, paper currency, checkable deposits, and credit balances with brokers
D	paper currency, coins, gold certificates, and time deposits

Explanation:

Detailed explanation-1: -The M1 money supply is composed of Federal Reserve notes-otherwise known as bills or paper money-and coins that are in circulation outside of the Federal Reserve Banks and the vaults of depository institutions. Paper money is the most significant component of a nation’s money supply.

Detailed explanation-2: -Answer and Explanation: The M1 money supply is composed of d. Checkable deposits and currency in circulation. M1 includes coins and currency outside banks and checkable deposits such as traveler’s check and checking account.

Detailed explanation-3: -The U.S. money supply comprises currency-dollar bills and coins issued by the Federal Reserve System and the U.S. Treasury-and various kinds of deposits held by the public at commercial banks and other depository institutions such as thrifts and credit unions.

Detailed explanation-4: -M1 includes those assets that are the most liquid such as cash, checkable (demand) deposits, and traveler’s checks.

There is 1 question to complete.