Refer to the given list of assets. 1. Large-denominated ($100,000 and over) time deposits
2) Savings deposits
3) Currency (coins and paper money) in circulation
4) Small-denominated (under $100,000) time deposits
5) Stock certiﬁcates
6) Checkable deposits
7) Money market deposit accounts
8) Money market mutual fund balances held by individuals
9) Money market mutual fund balances held by businesses
10) Currency held in bank vaults
The M2 deﬁnition of money includes
A) items 2, 3, 4, 6, 7, 8, and 10.
B) items 3, 4, 5, and 6.
C) items 2, 3, 4, 6, 7, and 8.
D) all of the items listed.

Question

Quizplus · Accepted Answer

M2 includes items that are easily accessible and can be used as a medium of exchange, such as savings deposits, small-denominated time deposits, checkable deposits, and money market deposit accounts. Money market mutual fund balances held by individuals and businesses are also included in M2. Additionally, currency held in bank vaults is included in M2 as it is readily available to the public through banks. Therefore, the correct answer is C) items 2, 3, 4, 6, 7, and 8.

Refer to the Given List of Assets