7
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 7 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

What is true of the M1 category of money?

Answer
A
It is not usually in circulation.
B
It cannot be quickly exchanged.
C
It can be easily liquidated.
D
It is in investment accounts.

Explanation

M1 includes money that is readily available for spending, such as currency and checking-account deposits. Because these forms can be used or exchanged quickly, they are highly liquid. Therefore, “It can be easily liquidated” is true.

AI-written and checked against the verified answer.

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