Which of the following is included in both M1 and M2?
A) Currency
B) Savings deposits
C) Small-denomination time deposits
D) Money market deposit accounts

Question

Quizplus · Accepted Answer

Currency is included in both M1 and M2. M1 includes currency in circulation and demand deposits, while M2 includes M1 plus savings deposits, small-denomination time deposits, and money market deposit accounts. Savings deposits (B) and small-denomination time deposits (C) are only included in M2, and money market deposit accounts (D) are not included in M1.

Which of the Following Is Included in Both M1 and M2