CLEP Principles of Management Exam Prep

Answer - A - Solely liquid forms of money-like all currently held bills and coins, checking accounts, deposits, and travelers checks-fit into the category of narrow money.

Key Takeaway: Broad money includes all liquid forms of money, plus near money, like funds in savings or market funds. : Currency is considered to be extremely liquid, as it’s the easiest form of money to convert into spendable form. Checks and money in savings is considered less liquid.