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What is the initial effect of the withdrawal on the M1 measure of

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What is the initial effect of the withdrawal on the M1
measure of money supply?
What is the initial effect of the withdrawal on the M1
measure of money supply?
Solution
The Money Supply is the complete stock of currency and
includes other liquid instruments in an economy as of a
particular time. The money supply comprises notes, coins
and balances which are kept in savings and checking
accounts. There are many types of money supply and
these are labeled as M0, M1, M2 and M3, related to the
type and size of the account in which the instrument is
kept.
M1 is a measure of the money supply which comprises all
physical money, like coins and notes, demand deposits,
checking accounts and also Negotiable Order of
Withdrawal (NOW) accounts. This means that, M1
measures the most liquid components of the money supply.
It contains money and assets that could quickly be
converted into cash. M1 only concentrates on the role of

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What is the initial effect of the withdrawal on the M1 measure of money supply? What is the initial effect of the withdrawal on the M1 measure of money supply? Solution The Money Supply is the complete stock of currency and includes other liquid instruments in an economy as of a particular time. The money supply comprises notes, coins and balances which are kept in savings and checking accounts. There are many types of money supply and these are labeled as M0, M1, M2 and M3, related to the type and size of the account in which the instrument is kept. M1 is a measure of the money supply which ...
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