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question 38 0.1 pts the other checkable deposits component of the m1 me…

Question

question 38 0.1 pts the other checkable deposits component of the m1 measure reported by the federal reserve includes money market deposit accounts. money market mutual fund shares. automatic transfer from savings accounts. negotiable time deposits.

Explanation:

Brief Explanations
  1. Recall the components of M1 and M2:
  • M1 includes currency, demand deposits, and other checkable deposits.
  • M2 includes M1 plus savings deposits, money market deposit accounts, money market mutual fund shares, and small - denomination time deposits.
  1. Analyze each option:
  • Option 1: Money market deposit accounts are part of M2, not M1's other checkable deposits.
  • Option 2: Money market mutual fund shares are part of M2, not M1's other checkable deposits.
  • Option 3: Automatic transfer from savings accounts (ATS) are considered part of other checkable deposits in M1. ATS accounts allow automatic transfers from savings to checking accounts, and these are included in the other checkable deposits component of M1.
  • Option 4: Negotiable time deposits (usually large - denomination) are not part of M1's other checkable deposits. They may be part of other monetary aggregates but not M1's other checkable deposits.

Answer:

C. automatic transfer from savings accounts.