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The Difference Between M1 and M2 Is That

Question 34

Multiple Choice

The difference between M1 and M2 is that


A) the former includes time deposits.
B) the latter includes small-denominated time deposits, savings accounts, money market deposit accounts, and money market mutual fund balances.
C) the latter includes negotiable government bonds.
D) the latter includes cash held by commercial banks and the U.S. Treasury.

Correct Answer:

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