Demand deposits are:
A)included in M1 but not in M2.
B)considered to be a near-money.
C)included in M1 and in M2.
D)also called notice deposits.

Question

Quizplus · Accepted Answer

Demand deposits are included in both M1 and M2, which are both measures of the money supply. M1 includes the most liquid forms of money, while M2 includes M1 plus certain types of savings accounts and time deposits. Therefore, demand deposits are considered to be a type of money and are included in both measures.

Demand Deposits Are