Definition, Measurement, and Functions of Money Practice Test

A household holds $150 in currency, $1{,}250 in a checking account, $4{,}000 in a savings account, and $3{,}000 in municipal bonds. Based on the assets described, which item is included in M1?

A worker receives a paycheck deposited into a checking account and uses that balance to pay rent by electronic transfer. Based on the instruments described, which function of money is primarily illustrated by the checking deposit used for rent payment?