What is an important characteristic of the M1 money supply?

A. liquidity

C. flexibility

D. solidity

Question

What is an important characteristic of the M1 money supply? 

A. liquidity 



C. flexibility 

D. solidity

anonymous · Answer

I think D...

tanya123 · Answer

its B which should be... "durability"

opcode · Answer

Durability would be a perfect answer...
But I don't see it was a choice, so I'll go ahead an explain why.
M1 is the money supply used for public transactions deposits. 
Such as dollars and coins, M1 is used by financial institutions such as banks which are  depository institutions, meaning they earn money from the public.
Can you see why durability is need? So the money doesn't fault apart and get worn out.

anonymous · Answer

Both are wrong. B is not the correct answer