The amount of money reported as M2:
A)is smaller than the amount reported as M1.
B)is larger than the amount reported as M1.
C)excludes coins and currency.
D)includes nonpersonal fixed-term deposits of residents booked in Canada.

Question

Quizplus · Accepted Answer

M2 includes all components of M1 (coins, currency, demand deposits, and traveler's checks) plus certain types of savings deposits, time deposits, and money market mutual funds. Therefore, the amount of money reported as M2 is larger than the amount reported as M1.

The Amount of Money Reported as M2