what is true of the m1 category of money?\nit is not usually in circulation.\nit cannot be quickly…

what is true of the m1 category of money?\nit is not usually in circulation.\nit cannot be quickly exchanged.\nit can be easily liquidated.\nit is in investment accounts.

what is true of the m1 category of money?\nit is not usually in circulation.\nit cannot be quickly exchanged.\nit can be easily liquidated.\nit is in investment accounts.

Answer

Brief Explanations:

M1 money supply includes physical currency, demand deposits, traveler's checks, and other checkable deposits. These components are highly liquid, meaning they can be easily converted into cash or used for transactions.

  • "It is not usually in circulation" is incorrect as M1 is in circulation.
  • "It cannot be quickly exchanged" is wrong because M1 is designed for quick exchange.
  • "It is in investment accounts" is false; investment accounts (like some long - term savings) are not part of M1.

Answer:

It can be easily liquidated.