Asked by Mohamad Arshil Vahora on May 16, 2024
Verified
M2 includes __________ M1.
A) all of
B) none of
C) some of
D) half of
M2
M2 is a measure of money supply that includes all elements of M1 (cash and liquid assets) plus near money, such as savings deposits, money market securities, and other time deposits, which are less liquid but can easily be converted into cash or checking deposits.
M1
M1 is a category of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other liquid funds.
- Learn about the essence of the Federal Reserve's role and the devices at its disposal for policy execution.
Verified Answer
MS
Malika SabharwalMay 21, 2024
Final Answer :
A
Explanation :
M2 includes all of M1, as M2 is a broader measure of the money supply that encompasses all of M1 (which includes cash and checking deposits) plus savings deposits, money market securities, and other forms of near money.
Learning Objectives
- Learn about the essence of the Federal Reserve's role and the devices at its disposal for policy execution.