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.