Question
Which of the following are components of M1? (More than one answer may be correct.)
Multiple select question.
Saving deposits
Checkable deposits
Stock certificates
Currency
Multiple select question.
Saving deposits
Checkable deposits
Stock certificates
Currency
Answers
GPT-4o mini
M1 is a measure of the money supply that includes the most liquid forms of money. The components of M1 are:
- **Checkable deposits**: These are deposits in checking accounts that can be easily accessed and withdrawn using checks or debit cards.
- **Currency**: This includes physical cash, such as coins and paper money, that is in circulation.
**Saving deposits** and **stock certificates** are not included in M1. Saving deposits are included in M2, which is a broader measure of money supply, and stock certificates represent ownership of shares in a company, not money.
So the correct answers are:
- **Checkable deposits**
- **Currency**
- **Checkable deposits**: These are deposits in checking accounts that can be easily accessed and withdrawn using checks or debit cards.
- **Currency**: This includes physical cash, such as coins and paper money, that is in circulation.
**Saving deposits** and **stock certificates** are not included in M1. Saving deposits are included in M2, which is a broader measure of money supply, and stock certificates represent ownership of shares in a company, not money.
So the correct answers are:
- **Checkable deposits**
- **Currency**