Lisa has a term deposit of $40,000 at a local bank. This $40,000 would be included in which of the following?

Question

Quizplus · Accepted Answer

The term deposit is not considered part of M1 (which only includes currency, demand deposits, and traveler's checks) or M3 (which includes less liquid assets like large time deposits and institutional money market funds). However, it is included in M2, which includes all of M1 plus assets like savings deposits and small time deposits.

Lisa Has a Term Deposit of $40,000 at a Local