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M1

13 五月, 2015 - 12:50

M1 includes currency (paper notes and coins) and checkable deposits. M1 is the most restrictive definition of money supply.

Only the most liquid forms of money are included in M1. Payments with coins and bank notes are naturally completed immediately. Payments by check are normally recognized on the day of receipt of the check, but in reality the recipient does not have access to the amount received until the check clears, which may take a day or more.