Question

In the U.S. economic system, what does M1 refer to? A. The amount of money in circulation outside the U.S. Treasury and Federal Reserve OB. The amount of money held in savings accounts and easily accessible investments C. The amount of money held by the U.S. government in case of financial emergency D. The amount of money in circulation as foreign currency or inaccessible investments​

Answer 1

Answer:A

Explanation:

Answer 2

Answer:

B. The amount of money held in savings accounts and easily accessible investments

Explanation:

One of the most defining characteristic of an M1 is that it can be easily converted into something that can be used to finish vast majority of transaction.  This include things such as savings accounts, physical currency, demand deposits,  and other forms of  easily accessible investments

Currently, a company's financial stability can be measured by looking at how much M1 they have on their disposal. If the M1 made up the vast majority of company's asset, we can almost say that the company has a healthy financial condition.