Question

the m1 money supply is expanded when a bank purchases securities from the public because the funds from the bank move outside the bank’s vault and into the hands of the public.

Answer 1

The statement "M1 money supply is expanded when a bank purchases securities from the public because the funds from the bank move outside the bank’s vault and into the hands of the public" is True.

The M1 money supply is a measurement of the total amount of foreign money in flow. It consists of M0, that's paper forex and cash which are in the stream (in people's pockets), plus publicly held checking bills.

M1 is the money supply this is composed of forex, demand deposits, and different liquid deposits—which include financial savings deposits. M1 consists of the maximum liquid quantities of the money supply because it carries currency and property that either is or may be speedy converted to cash.

M1 is a narrow degree of money supply that includes physical forex, demand deposits, traveler's checks, and other checkable deposits. M1 no longer includes financial belongings, which include financial savings money owed, term deposits, and bonds.

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