Identify the different forms that money takes in the nation's money supply
1 answer
Question:
Identify the different forms that money takes in the nation's money supply
Answers
Answer:Money supply in the US includes currency notes and coins in circulation, checking accounts, money market accounts, savings account, time deposits and other deposits. Explanation:Money supply refers to the total amount of money in an economy. The money supply in the US has different forms. M1 is the most liquid form of money. It includes currency in circulation, traveler's check and checking accounts that pay interest. M2 includes everything in M1 plus savings accounts, money market accounts, and money market mutual funds. M3 includes M2 plus long term deposits and money market funds. While M4 includes M3 and other deposits.
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