The definition of M2 includes
I. M1.
II. money market mutual funds.
III. currency held outside of banks.
A) II and III only
B) I and III only
C) I, II, and III
D) I and II only

Question

Quizplus · Accepted Answer

M2 includes M1 (currency in circulation, demand deposits, and other checkable deposits) as well as money market mutual funds and some forms of savings deposits and time deposits. It also includes currency held outside of banks. Therefore, options II and III are both correct and option I is also included within M2.

The Definition of M2 Includes