In which of the following monetary aggregates are Treasury Bills included?
A) M1 only
B) M2 only
C) Both M1 and M2
D) Neither M1 nor M2

Question

Quizplus · Accepted Answer

Treasury Bills are not included in either M1 or M2. M1 includes only the most liquid forms of money, such as currency, demand deposits, and traveler's checks, while M2 includes all of M1 as well as less liquid forms of money, such as savings deposits and small time deposits. Treasury Bills are not considered part of the money supply as they are short-term debt obligations issued by the government and are not commonly used as a medium of exchange.

In Which of the Following Monetary Aggregates Are Treasury Bills