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ra1l [238]
3 years ago
9

Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange?

m1 m2 m1 and m2 neither m1 nor m2?
Business
1 answer:
Gala2k [10]3 years ago
7 0
The definition of money supply which include only items which are directly and immediately usable as medium of exchange is M1. Money supply refers to the entire stock of currency and other liquid assets that are circulating in a particular economy at a particular period of time.  
M1 include cash and checking deposits which are very liquid in nature and are suitable as medium of exchange. 
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