Before they can be used in regular exchanges, the assets that make up M2 must often
A) have their interest computed.
B) be converted to M1 assets.
C) be paid off if they are credit cards.
D) have reached term if they are insurance policies.

Question

Quizplus · Accepted Answer

M2 includes all the assets in M1 plus additional assets that cannot be directly used for transactions. To be used in regular exchanges, the assets that make up M2 must be converted to M1 assets. Therefore, choice B is the correct answer. Choices A, C, and D are not relevant to the process of converting M2 assets to M1 assets.

Before They Can Be Used in Regular Exchanges, the Assets