Asked by Courtnie Marie on May 22, 2024
Verified
All of the following are included in M1 EXCEPT
A) money market mutual funds
B) total value of coins
C) checking accounts
D) currency in circulation
Money Market Mutual Funds
Investment funds that pool money from investors to purchase short-term, high-quality debt securities like treasury bills and commercial paper.
M1
A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and checking accounts.
- Familiarize yourself with the pivotal duties of the Federal Reserve and its strategies for policy intervention.
Verified Answer
GP
Gavriela PerrymanMay 23, 2024
Final Answer :
A
Explanation :
M1 includes the most liquid forms of money, such as currency in circulation, checking accounts, and the total value of coins. Money market mutual funds are considered a part of M2, not M1, because they are less liquid and cannot be used directly for transactions.
Learning Objectives
- Familiarize yourself with the pivotal duties of the Federal Reserve and its strategies for policy intervention.