What is the money in the form of currency and checkable deposits in commercial banks called?Multiple choice question.M1S1S2GDP

Break Down the Problem

1. Identify the key terms in the question.
2. Understand what each of the multiple-choice options represents.

Relevant Concepts

1. M1 refers to the total of all physical currency, checkable deposits, and other liquid assets.
2. S1 and S2 are not standard terminology in this context.
3. GDP (Gross Domestic Product) measures the total economic output of a country and is not the correct answer.

Analysis and Detail

• M1 includes:
  • Coins and paper currency in circulation.
  • Demand deposits (checkable deposits).
• Therefore, the term that describes money in the form of currency and checkable deposits in commercial banks is specifically M1.

Verify and Summarize

The only option that correctly refers to the money in circulation along with checkable deposits is M1. S1, S2, and GDP do not pertain to the definition of currency and checkable deposits.

Final Answer

M1