Question

M2 is comprised of a. small-denomination time deposits savings deposits money market accounts b. small-denomination time deposits credit cards money market accounts gold deposits. c. M1 small-denomination time deposits savings deposits retail money market mutual funds. d. M1 small denomination time deposits credit cards money market accounts.

Answer 1

Answer:

M1 + small-denomination time deposits + savings deposits + retail money market mutual funds.

Explanation:

M2 measure money supply. It includes M1 and near money

Near money consists of non cash assets that are highly liquid - they can be easily converted to cash.

M2 is a broader definition of money than M1.