Question

The form of money consisting of currency held by the public and checking deposits at depository institutions is called?

1) Fiat money
2) Commodity money
3) Representative money
4) M1 money

Answer 1

M1 money is the form of money consisting of currency held by the public and checking deposits at depository institutions.

Step-by-step explanation:

The form of money consisting of currency held by the public and checking deposits at depository institutions is called M1 money. M1 money supply includes coins and currency in circulation, as well as checkable deposits or demand deposits held in checking accounts. These items together, currency and checking accounts in banks, comprise the definition of money known as M1, which is measured daily by the Federal Reserve System.