{"id":246581,"date":"2025-07-07T09:07:28","date_gmt":"2025-07-07T09:07:28","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=246581"},"modified":"2025-07-07T09:07:31","modified_gmt":"2025-07-07T09:07:31","slug":"which-of-the-following-is-not-included-in-m1-2","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/07\/07\/which-of-the-following-is-not-included-in-m1-2\/","title":{"rendered":"Which of the following is not included in M1"},"content":{"rendered":"\n

Which of the following is not included in M1? Savings deposits Checkable deposits Traveler’s checks Currency<\/p>\n\n\n\n

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

The correct answer is Savings deposits<\/strong>.<\/p>\n\n\n\n

M1 is a measure of the money supply that includes only the most liquid forms of money\u2014those that are readily available for spending and are highly liquid. These components are typically used for transactions. The key elements of M1 are:<\/p>\n\n\n\n

    \n
  1. Currency<\/strong>: This includes coins and paper money in circulation, excluding those held by the government or financial institutions. It’s the physical money people use for everyday transactions.<\/li>\n\n\n\n
  2. Checkable deposits<\/strong>: These are deposits in checking accounts that can be withdrawn at any time using checks, debit cards, or other means. The funds are immediately available for use.<\/li>\n\n\n\n
  3. Traveler’s checks<\/strong>: Although not as common today, these are prepaid checks that are used as a form of payment, particularly when traveling. They are included in M1 because they are essentially a form of money that is easily usable.<\/li>\n<\/ol>\n\n\n\n

    On the other hand, Savings deposits<\/strong> are not part of M1. They are considered a part of M2, a broader measure of the money supply. While savings deposits are relatively liquid, they are not as immediately accessible for transactions as the components of M1. With savings deposits, individuals typically need to transfer the funds into a checking account or withdraw them from an ATM, which can take time or require additional steps.<\/p>\n\n\n\n

    In summary, M1<\/strong> is meant to capture the money supply that can be directly used for spending, so savings deposits are excluded, even though they represent money in the economy.<\/p>\n\n\n\n

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

    Which of the following is not included in M1? Savings deposits Checkable deposits Traveler’s checks Currency The Correct Answer and Explanation is: The correct answer is Savings deposits. M1 is a measure of the money supply that includes only the most liquid forms of money\u2014those that are readily available for spending and are highly liquid. […]<\/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-246581","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/246581","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=246581"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/246581\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=246581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=246581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=246581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}