Final answer:
The true cash balance is independently reached a second time by making adjustments to the M1, which includes cash and coins in circulation, checkable bank deposits, and travelers checks. This process helps in determining the accurate cash balance in the economy and is important for understanding the overall liquidity of an economy.
Step-by-step explanation:
The true cash balance is independently reached a second time by making adjustments to the M1.
M1 is a measure of money supply that includes cash and coins in circulation, checkable bank deposits, and travelers checks. When making adjustments to the M1, factors such as changes in currency circulation, bank deposits, and travelers checks need to be taken into account.
This process helps in determining the accurate cash balance in the economy and is important for understanding the overall liquidity of an economy.