M1 Is the Most Liquid Form of Money

question 70

True/False

M1 is the most liquid form of money.

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Definitions:

Party Status

The recognition of being a participant or member in a legal action or in a contractual or political relationship.

General Rule

A principle or guideline that applies broadly and is considered to be of general acceptance or application.

Promissory Note

A written, legally binding document in which one party promises to pay another a definite sum of money either on demand or at a specified future date.

Certificate Of Deposit

A Certificate of Deposit (CD) is a financial product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.