M1 is always greater than or equal to M2.

Name: M1 is always greater than or equal to M2.
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Question

Quizplus · Accepted Answer

M1 and M2 are measures of the money supply where M1 includes more liquid forms of money, such as cash and checking deposits, while M2 includes M1 plus savings deposits, money market securities, and other forms of near-money. M2 can be larger than M1 because it encompasses a broader range of assets.

M1 Is Always Greater Than or Equal to M2