The difference between M1 and M2 is that:
A)the former includes notice deposits.
B)the latter includes personal saving deposits and non-personal notice deposits.
C)the latter includes government bonds.
D)the latter includes cash held by chartered banks.

Question

Quizplus · Accepted Answer

M1 includes cash and current account deposits whereas M2 includes M1 plus personal saving deposits and non-personal notice deposits. Government bonds and cash held by chartered banks are not included in either M1 or M2.

The Difference Between M1 and M2 Is That