M1 is larger than M2.

Name: M1 is larger than M2.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

M1 refers to the total supply of all types of money in an economy, including physical currency, demand deposits, and various types of savings deposits. M2 is a narrower measure of the money supply that includes M1 plus savings deposits, money market funds, and other time deposits. Since M2 includes M1 plus additional forms of money, it is larger than M1. Therefore, the statement "M1 is larger than M2" is false.

M1 Is Larger Than M2