Overview of currency

1. Concept

• Define money ： Something generally accepted in the payment of goods and services and in the repayment of debts
• Function of money ： Trading medium 、 Unit of account 、 Value storage
• Evolution of payment system ： Commodity currency 、 Dishonoured paper money 、 Check 、 electronic payment 、 Electronic money
• Measurement of currency ：

M1： currency （currency）、 Deposit in a checking account 、 Traveler's checks 、 Other check deposits

M2：M1、 Small time deposits 、 Savings deposits and money market accounts 、 Money market mutual funds

2. M1 and M2 The amount of money

2.1 M1

M1 The composition of is currency 、 Deposit in a checking account 、 Traveler's checks 、 Other check deposits . This is a 《 Monetary finance 》 Inside the standard definition , After the financial technology innovation , Other checking deposits are replaced by other liquid deposits （Other Liquidity Deposits）; In addition, the Federal Reserve later announced M1 The traveler's check is removed from it （ The proportion is very small , And decreasing year by year ）.

After adjustment according to the actual situation M1 Its composition is as follows ：

• currency （CURRSL）
• Demand deposits （DEMDEPSL）
• Other current deposits （MDLM）

Work it out 2021 Year of M1 as follows （ Company billion, A billion dollars ）：

The above three components are in M1 The proportion of ：