evaluate-the-rationale-for-excluding-savings-accounts-from-m1-in-terms-of-liquid

Question

Evaluate the rationale for excluding savings accounts from M1 in terms of liquidity and spending.

Accepted Answer

Savings accounts are less liquid and not immediately available for spending.

Answer

Savings accounts are more liquid than checking accounts.

Answer

Savings accounts are excluded because they are not financial assets.

Answer

Savings accounts are included in M1 due to their liquidity.