Question

Which term refers to the cash in circulation that people and businesses use for ordinary transactions? refers to the cash in circulation that people and businesses use for ordinary transactions.

Answer 1

Answer: M1 money supply

Explanation: M1 includes physical currency (coins and paper money) as well as demand deposits (checking accounts) and other liquid assets that can be quickly converted into cash for transactions.

It represents the most liquid components of the money supply chain. It's used for gauging the amount of money available for everyday purchases and payments.