The broader definitions of the money supply (M₂ and M₃) emphasize the role of money as a A) temporary store of value B) form of legal tender C) medium of exchange D) unit of account

Question

Quizplus · Accepted Answer

M₂ and M₃ include not only currency and demand deposits (M₁), but also other liquid assets such as savings deposits, money market accounts, and short-term Treasury securities. These assets are considered to be "near money" because they can be easily converted into cash. As a result, the broader definitions of the money supply emphasize the role of money as a temporary store of value.

The Broader Definitions of the Money Supply (M2 and M3)

The Broader Definitions of the Money Supply (M₂ and M₃)