M1 is known for including which of the following components?

The correct choice encompasses all three components—total currency in circulation, checking account balances, and travelers' checks—because they all contribute to the definition of M1, which is a measure of the money supply in an economy.

M1 specifically includes the most liquid forms of money, which can be readily used for transactions. Total currency in circulation refers to the physical coins and paper money that individuals and businesses use daily. Checking account balances are also part of M1, as these funds can be accessed quickly for spending. Additionally, travelers' checks are considered a part of M1 because they can quickly be converted into cash or used to make purchases.

The inclusion of all these elements in M1 highlights its role as a measure of liquid money in the economy, which is crucial for understanding spending and consumption patterns. Therefore, the choice accurately reflects the composition of M1 as a key indicator of money supply.