Which deﬁnition(s) of the money supply include(s) only items that are directly and immediately usable as a medium of exchange?

Question

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M1 includes only the most liquid forms of money, which are directly and immediately usable as a medium of exchange, such as physical currency, checking account deposits, and traveler's checks. M2 includes additional forms of money that are less liquid and may not be as readily exchangeable, such as savings account deposits and small time deposits.

Which Deﬁnition(s) of the Money Supply Include(s) Only Items That