????M1 is a measure of the money supply that includes physical currency, such as Coins and Paper Money, as well as demand deposits like checking accounts and other liquid assets that can be quickly converted into cash. It is considered a narrow measure of the money supply because it includes the most liquid forms of money that are readily accessible for transactions. M1 does not include less liquid assets like savings accounts or time deposits.
Related Q&A：
What does M1 include？Oh boy, M1 typically includes a bunch of stuff. You know, it often refers to the money supply and can encompass things like physical currency like cash and coins that people have on hand. It also includes demand deposits, which are the funds that folks can withdraw from their checking accounts at any time. Sometimes it might even include traveler's checks and other highly liquid forms of money. So, in a nutshell, M1 is all about the most readily available and spendable forms of money in an economy.
