Question

Which of the following is not counted as part of M1?

Coins
Federal Reserve notes, or "paper money"/
Savings deposits
Checkable deposits
Traveler’s checks

Answer 1

@jim_thompson5910 I believe the answer is b)papermoney

Answer 2

hint: look at what is considered M2

http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=M2

Answer 3

ok one sec

Answer 4

its coins!

Answer 5

coins are part of currency

Answer 6

so coins are part of M1

Answer 7

oh wait that was M2 u showed me my mistake

Answer 8

its travelers checks

Answer 9

which of your answer choices are part of M2?

Answer 10

nope travelers checks are actually part of M1

http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=M1

Answer 11

its checkable deposists

Answer 12

closer

Answer 13

The medium-range monetary aggregate for the U.S. economy containing the combination of M1 (currency and checkable deposits) and short-term, small denomination near monies

Answer 14

it's savings deposits since they are part of M2

Answer 15

oh

Answer 16

sorry, can u explain m2 to me then?

Answer 17

M1 is basically where the exchange happens. Anything in M1 is used as a medium of exchange

M2 is defined to be M1 plus other items such as savings accounts, investments like Money Market Deposits, etc

on that page I sent it says "M2 contains financial assets that either function directly as money for the U.S. economy or can be easily and quickly converted into money. "

Answer 18

thanks!

Answer 19

np