{"id":246526,"date":"2025-07-07T08:38:02","date_gmt":"2025-07-07T08:38:02","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=246526"},"modified":"2025-07-07T08:38:03","modified_gmt":"2025-07-07T08:38:03","slug":"which-of-the-following-is-not-included-in-m1","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/07\/07\/which-of-the-following-is-not-included-in-m1\/","title":{"rendered":"Which of the following is not included in M1"},"content":{"rendered":"\n

Which of the following is not included in M1? Currency Demand deposits Savings deposits<\/p>\n\n\n\n

The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n

M1 is a measure of the money supply that includes the most liquid forms of money, which can be quickly accessed or spent. It is used as an indicator of the amount of money circulating in the economy.<\/p>\n\n\n\n

Here is the breakdown of the components of M1:<\/p>\n\n\n\n

    \n
  1. Currency<\/strong>: This includes all physical forms of money, such as coins and paper bills, that are in circulation. These are the most liquid assets and form a major part of M1.<\/li>\n\n\n\n
  2. Demand Deposits<\/strong>: These are funds held in checking accounts that can be withdrawn at any time without any restrictions, such as through checks, ATM withdrawals, or electronic transfers. They are highly liquid and, thus, included in M1.<\/li>\n\n\n\n
  3. Savings Deposits<\/strong>: These are funds held in savings accounts. While these deposits can be withdrawn, they are not as liquid as demand deposits because they might require a delay for withdrawal or are subject to restrictions. Therefore, savings deposits<\/strong> are not included in M1<\/strong> but are instead part of M2, which includes slightly less liquid assets.<\/li>\n<\/ol>\n\n\n\n

    Why Savings Deposits Are Not Included in M1:<\/h3>\n\n\n\n
      \n
    • Liquidity<\/strong>: M1 is focused on assets that can be immediately accessed for transactions. Savings deposits, while relatively easy to access, are not considered as liquid as demand deposits because they typically require a transfer or a delay in accessing the funds. For example, you may need to transfer funds from a savings account to a checking account before you can use them.<\/li>\n\n\n\n
    • M2<\/strong>: M2 includes all of M1 plus savings deposits, time deposits, and other near-money assets, which are less liquid. Savings deposits fall into this category because they are not as immediately usable for day-to-day transactions as the components of M1.<\/li>\n<\/ul>\n\n\n\n

      In summary, savings deposits<\/strong> are not part of M1 because they are less liquid compared to the other components, and they are classified under M2, which covers a broader range of money supply components.<\/p>\n\n\n\n

      \"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

      Which of the following is not included in M1? Currency Demand deposits Savings deposits The Correct Answer and Explanation is: M1 is a measure of the money supply that includes the most liquid forms of money, which can be quickly accessed or spent. It is used as an indicator of the amount of money circulating […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-246526","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/246526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=246526"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/246526\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=246526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=246526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=246526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}