Definition of M1 Money By Jim Gandolf

Definition of M1 Money 

By Jim Gandolf 

This is the technical term for M1 Money: 

M1 money is the narrowest and most liquid measure of the money supply in an economy. It represents the forms of money that are readily available for immediate use in transactions.

Specifically, M1 generally includes:

 * Currency in circulation: This refers to physical cash (banknotes and coins) held by the public, outside of banks and government vaults.

 * Demand deposits: These are funds held in checking accounts, which can be withdrawn "on demand" or used for payments via checks or debit cards.

 * Other liquid deposits (including savings deposits): Since May 2020 in the United States, the definition of M1 was expanded to include savings deposits because regulatory changes made them much more liquid and easily transferable, similar to checking accounts. Before this, savings accounts were generally considered part of M2.

 * (Historically, M1 also included traveler's checks, though their use has significantly declined.)

In essence, M1 captures the money that is most actively used for daily economic transactions. Central banks and economists monitor M1 as a key indicator of immediate purchasing power and liquidity in the financial system, which can influence inflation, interest rates, and overall economic activity.

But in reality, it is not unless it’s insured by some of the insurance companies deal with, and you can’t claim money on the server being M1 Money, because it defeats the purpose of being in one money. Or bonded and assured crypto currency (TURON) 

Jim Gandolf 

WMA 

Banking & Finance 

Bonded & Assured 

Bond is on record