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M1 is a _____ defination of …

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M1 is a _____ defination of money supply???

Posted by Saloni Jain 3 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Meghna Thapar 3 years, 5 months ago

M1 is the money supply that is composed of physical currency and coin, demand deposits, travelers' checks, other checkable deposits, and negotiable order of withdrawal (NOW) accounts. ... However, "near money" and "near, near money," which fall under M2 and M3, cannot be converted to currency as quickly. M1 money supply includes those monies that are very liquid such as cash, checkable (demand) deposits, and traveler's checks M2 money supply is less liquid in nature and includes M1 plus savings and time deposits, certificates of deposits, and money market funds.

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