Question

Refer to the given list of assets.

1. Large-denominated ($100,000 and over) time deposits
2. Noncheckable savings deposits
3. Currency (coins and paper money) in circulation
4. Small-denominated (under $100,000) time deposits
5. Stock certificates
6. Checkable deposits
7. Money market deposit accounts
8. Money market mutual fund balances held by individuals
9. Money market mutual fund balances held by businesses
10. Currency held in bank vaults
The M1 definition of money includes item(s) _________.

Answer 1

The M1 definition of money includes item(s) :

3. Currency (coins and paper money) in circulation

6. Checkable deposits

Step-by-step explanation:

According to Fred, M1 comprises:

(1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of other depository corporations;

(2) traveler's checks of nonbank issuers;

(3) demand deposits at commercial banks (excluding those amounts held by other depository corporations, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and

(4) other checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions. \

Seasonally adjusted M1 is constructed by summing currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately.