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krok68 [10]
3 years ago
12

The official definition of the money supply that includes coins, paper money, travelers' checks, conventional checking accounts,

and other checkable deposits at banks and savings institutions is called ____.
Social Studies
2 answers:
TEA [102]3 years ago
8 0

Answer: The answer is bank deposit.

Explanation:

The supply of money refers to the total amount of all forms of money in circulation in a country at a given period of time. This includes coins, paper money, Travellers cheque etc.

This are used in making payments and for the settlement of debt. In developed countries bank deposit constitutes 90% of the money supply.

Maru [420]3 years ago
6 0

Answer:

M1

Explanation:

In economics, the term M1 refers to very liquid money supply (money that is easy to get to) that includes the following:

  • physical currency (coins and paper money)
  • demand deposits,
  • traveler's checks,
  • other checkable deposits.

On the other, hand, M2 is less liquid money supply and it includes M1 plus:

  • savings and time deposits,
  • certificates of deposits,
  • money market funds.

In general terms, the main difference between these two is how easy is to get access to them, M1 is more accessible (more liquid) than M2.

The question asks us about the <u>money supply that includes coins, paper money, traveler's checks, conventional checking accounts and checkable deposits. </u>We can see that all these refers to the most easily accessed money supply and thus <u>this is the definition of M1</u>

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