Currency held by the public,balances in transactions accounts,plus balances in most savings accounts and money market mutual funds are the
A)Money demand.
B)Federal funds.
C)Money supply (M1).
D)Money supply (M2).

Question

Quizplus · Accepted Answer

Currency held by the public, balances in transactions accounts, and balances in most savings accounts and money market mutual funds are all components of M2, which is a broader measure of the money supply. Therefore, the correct choice is D.

Currency Held by the Public,balances in Transactions Accounts,plus Balances in Most