Final answer:
True. M1 money supply calculation is true as it consists of currency in circulation, checkable deposits, and traveler's checks, which are all measured daily by the Federal Reserve System. The correct answer is option A.
Step-by-step explanation:
The statement that M1 money supply is calculated by adding together currency in circulation, checkable deposits, and traveler's checks is True. M1 is a narrow definition of the money supply that indeed includes currency (coins and bills that circulate in an economy outside of the Federal Reserve Bank and bank vaults), checkable or demand deposits (amounts held in checking accounts), and to a lesser extent, traveler's checks, although their use is declining. It is these components that the Federal Reserve System measures daily to determine M1.