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.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter18: Money And The Federal Reserve System

Section: Chapter Questions

Problem 1SQ

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