标题: Traveler's Checks and Checking Deposit [打印本页] 作者: LiquidAssets10 时间: 2011-7-13 16:40 标题: Traveler's Checks and Checking Deposit
1) Why is the above 2 included in M1 and why is savings deposit in M2?
2) Whats the difference between traveler's check and normal check?
Thanks.作者: kamara5 时间: 2011-7-13 16:40
M1 money is more liquid and floating money and spent everyday.
Think like this Savings money could be potentially investing money and may not exchange hands as frequently.
Travellor's check - When you buy travellor check you pay money and the cash is exachanged between the hands (from you to issuing institution) but not with normal checks until the receipient of the check deposits to the bank and it clears.
M1 money also excludes the Government checking accounts.
