If we look at the components of M2, we find that
A)savings deposits are the largest component.
B)money market funds are the largest component.
C)currency is the largest component.
D)loans are the largest component.
E)banks' reserves are the largest component.

Question

Quizplus · Accepted Answer

Savings deposits are the largest component of M2, which includes savings deposits, money market funds, and other near-money assets, but not currency or loans.

If We Look at the Components of M2, We Find