Question

what is true of the M1 category of money?

Answer 1

M1 is the money supply that points out the physical currency, coin, deposits, travelers checks and other checkable deposits and negotiable order of withdrawal accounts.  

Maximum of the liquid portions of the money supply are calculated by M1 as because it contains currency and assets that could be rapidly converted to cash altogether.

Answer 2

It can be easily liquidated.

All types of money supplies that include coin, currency, drafts, travellers cheques and negotiable order of withdrawal (NOW) accounts fall within the M1 category of money.

These types of money supplies are either cash or can be easily converted to cash.

Contrastingly, the M2 and M3 category of money supplies may not be easily converted into cash.