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M1 is defined as coins and currency in circulation, traveler's checks and:
ACorporate bonds
BGovernment debt
CCheckable deposits
DSavings deposits
Answer & Solution
Correct answer: C. Checkable deposits
1. M1 has three named components.
2. M1 money supply includes coins and currency in circulation.
3. The full definition is coins and currency plus checkable deposits plus traveler's checks.
4. Checkable deposits are also called demand deposits.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_
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