Final answer:
Currency consists of paper money and coins, which along with checkable deposits, form the M1 money supply. Checks are a means to access demand deposits but are not currency themselves. Savings deposits and other forms of money are part of the M2 money supply but not of currency or M1.
Step-by-step explanation:
The student's question asks which elements comprise currency. The answer is that currency includes paper money and coins.
Currency, along with checkable deposits (also known as demand deposits), makes up the M1 money supply. M1 is one of the ways the Federal Reserve System measures the money supply, and it specifically includes currency in circulation and checking accounts in banks.
Though checks themselves are not considered currency, they are a method by which demand deposits can be accessed.
It's important to differentiate that while savings deposits and other forms of money like CDs and money market funds are included in the broader M2 money supply, they are not included in currency or M1.