ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
investments such as stocks and bonds.
|
|
|
credit-card balances and mortgage debts.
|
|
|
the gold and silver that backs the money supply.
|
|
|
currency, checkable deposits, and traveler’s checks.
|
Detailed explanation-1: -The M1 money supply includes all physical currency, traveler’s checks, demand deposits, and other checkable deposits (e.g. checking accounts). While the M1 is a measure of all the most liquid forms of money in an economy, other forms of money supply are slightly different.
Detailed explanation-2: -Money is measured with several definitions: M1 includes currency and money in checking accounts (demand deposits). Traveler’s checks are also a component of M1, but are declining in use. M2 includes all of M1, plus savings deposits, time deposits like certificates of deposit, and money market funds.
Detailed explanation-3: -In addition to the monetary base (M0), which consists of coins and cash in circulation, M1 also contains checkable (demand) deposits and traveler’s checks.
Detailed explanation-4: -M1 includes currency i.e. banknotes and coins, plus overnight deposits. M1 is expressed as a seasonally adjusted index based on 2015=100.