Which of the Following Statements Best Summarizes the Difference Between

Which of the following statements best summarizes the difference between M-1 and M-2?

A) The M-1 definition of the money supply includes only domestic currencies while the M-2 definition includes foreign currencies.
B) The M-1 definition consists of hard currencies which are backed by gold and silver, while M-2 consists of soft currencies which are not backed by gold and silver.
C) The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
D) The M-1 money supply consists only of the currency (coins and paper money) that circulates in our economy, while the M-2 includes traveler's checks and funds in demand deposits.