M1

M1 is a measure of the total money supply in an economy, focusing on the most liquid forms of money. It includes physical cash held by the public, checking accounts (demand deposits), and traveler's checks, which can be quickly used for transactions. M1 represents the money readily available for spending and is a key indicator of economic activity and liquidity. It helps economists and policymakers understand how much money is immediately accessible for consumers and businesses to use in buying goods and services.