The Largest Proportion of M1 Is Made Up of

question 15

Multiple Choice

The largest proportion of M1 is made up of

• A)currency.
• B)checking account deposits.
• C)traveler's checks.
• D)savings account deposits.
• E)time deposits.

---

Definitions:

Negotiability

The characteristic of a document (such as a check or note) signifying that it can be transferred from one person to another in a manner that the recipient takes it free of most defenses that could be raised by the original maker or drawer.

Agent's Signature

The signature of a person who is authorized to act on behalf of another, indicating consent or agreement in a contractual context.

Maker

In the context of contracts, the party who creates or signs a promissory note to pay a certain amount of money to another party.

Drawer

In banking and finance, a drawer refers to the party that writes and signs a check or draft, directing a bank or other financial institution to pay a specified amount to a named payee.