Arrange M1, M2, M3 and M4 from the most liquid to the least liquid.

M1, M2, M3, M4Correct answerYour answerM4, M3, M2, M1Correct answerYour answerM3, M1, M4, M2Correct answerYour answerM2, M1, M4, M3Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

M1 holds only currency and demand deposits; each later measure adds less liquid deposits.

Concept: Liquidity of the measures
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe supply of money: M1 to M4

Practise this chapter →

Ten questions from Money and Its Functions, at your own pace.

Practise this chapter →

Ten questions from Money and Its Functions, at your own pace.

Practise this chapter All 57 questions in Money and Its Functions Revise the notes for Money and Its Functions

Arrange M1, M2, M3 and M4 from the most liquid to the least liquid.

Explanation