Which of the following definitions of the money supply includes only the most liquid forms of money?

Question

Quizplus · Accepted Answer

M₁ includes only the most liquid forms of money, such as currency, demand deposits, and traveler's checks. M2 includes M₁ plus savings deposits, small time deposits, and retail money market mutual funds. Savings deposits (C) and money market mutual deposits (D) are not part of the most liquid forms of money included in M₁.

Which of the Following Definitions of the Money Supply Includes