As of December 2010, the largest single component of M₂ consists of A)checkable deposits at banks. B)cash, coins, and other currency. C)savings deposits. D)gold and silver in commodity accounts.

Question

Quizplus · Accepted Answer

Savings deposits are the largest component of M1 when considering broader definitions of money supply, such as M2, which includes M1 (cash, coins, and demand deposits) plus savings deposits, money market deposits, and other near money.

As of December 2010, the Largest Single Component of M2

As of December 2010, the Largest Single Component of M₂