Business Finance
Money and Banking: M1

Question Description

Give me some examples of what would be classified as M1. What is an example of something that is NOT considered M1? Why not?

Original answers are the best answers!

Final Answer

M1 is a money supply measure that comprises all physical money like currency and coins. It also includes Negotiable Order of Withdrawal (NOW) accounts, checking accounts and demand deposits. It determines the most liquid elements of the money supply, as it holds assets and cash which can be exchanged to currency very swiftly. It does not hold "near, near money" or "near, money" as other measures do like M2 and M3.


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