Due to new methods of electronically transferring assets from savings accounts to checking accounts,many economists favor moving savings accounts from

Question

Quizplus · Accepted Answer

Savings accounts are typically part of M2, which includes M1 plus savings accounts and other near-money assets. If savings accounts can be easily transferred to checking accounts, they become more liquid and should be included in M1, which consists of the most liquid forms of money.

Due to New Methods of Electronically Transferring Assets from Savings