The various money supply measures (M1 and M2)are used to distinguish the

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The various money supply measures, such as M1 and M2, are used to distinguish the liquidity and accessibility of assets. M1 includes cash and other highly liquid assets that can be easily accessed, while M2 includes assets that are less liquid and less easily accessible, such as savings accounts and certificates of deposit. These measures help to understand the different types of assets and their availability in the economy. Other options, such as the rate of money flow, bank transfers between savings and checking accounts, and bank transfers between institutions, do not distinguish between the types of assets in the economy.

The Various Money Supply Measures (M1 and M2)are Used to Distinguish