Answer: M2
Explanation: M2 is the most commonly quoted monetary aggregate as it includes all the component of M1 plus assets that are not directly accepted as a means of payment.
[tex] M2= Currency Notes and Coins + Checkable deposits + Travelers Checks + Saving Deposits+ Time Deposits + Shares in Mutual Funds+ Money Market Securities [/tex]
This monetary aggregate includes small denomination time deposits, shares in mutual funds and other money market securities. Thus, it is also called broad money.
