CFA Practice Question

CFA Practice Question

The M1 money supply measure does not include ______.

I. demand deposits
II. interest-earning checkable deposits
III. checkable deposits
IV. traveler's checks
A. I, III and IV
B. I and III
C. It includes all of the 4 choices.
Explanation: Checkable deposits (III) include both demand deposits (I) and interest-earning checkable deposits (II)! M1 includes circulating currencies, checkable deposits, and traveler's checks. M1 includes all of these choices.

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