3. The Federal Reserve calculates two measures of the money supply. M1 is the narrowest monetary aggregate,

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3. The Federal Reserve calculates two measures of the money supply. M1 is the narrowest monetary aggregate, containing only currency in circulation, traveler’s checks, and checkable bank deposits. M2 includes a wider range of assets called near-moneys, mainly other forms of bank deposits, that can easily be converted into checkable bank deposits.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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