In defining money as M1, economists exclude time deposits because: the intrinsic value of time deposits is nil. the purchasing power of time deposits is much less stable than that of checkable deposits and currency. they are not directly or immediately a medium of exchange. they are not recognized by the Federal government as legal tender.
In defining money as M1, economists exclude time deposits because: the intrinsic value of time deposits is nil. the purchasing power of time deposits is much less stable than that of checkable deposits and currency. they are not directly or immediately a medium of exchange. they are not recognized by the Federal government as legal tender.
Chapter18: Money And The Federal Reserve System
Section: Chapter Questions
Problem 17SQ
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In defining money as M1, economists exclude time deposits because:
the intrinsic value of time deposits is nil.
the
they are not directly or immediately a medium of exchange.
they are not recognized by the Federal government as legal tender.
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