M1
Definition
M1 refers to the narrowest definition of money supply, which includes physical currency (coins and paper money) in circulation, demand deposits (checking accounts), and traveler's checks.
Related terms
M2: M2 is a broader measure of money supply that includes all components of M1 plus savings deposits, time deposits (certificates of deposit), and retail money market funds.
Federal Reserve: The Federal Reserve, also known as the central bank of the United States, plays a crucial role in controlling and regulating the money supply.
Monetary Policy: Monetary policy refers to actions taken by the central bank to manage and control the money supply in order to achieve economic goals such as price stability and full employment.
"M1" appears in:
Subjects (1)
Intro to Business
Additional resources (1)
AP Macroeconomics - Unit 4 Overview: Financial Sector
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CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
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Glossary
Cram Events
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Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.