Which of the following statements is TRUE about M2?
A) Its total value is smaller than that of M1.
B) Apart from those assets also included in M1, it includes no assets that offer check-writing features.
C) Its total value is about four times as large as M1.
D) It includes large-denomination time deposits.

Question

Quizplus · Accepted Answer

M2 includes all of M1 (which consists of currency in circulation and checkable deposits) plus additional assets like savings deposits, small-denomination time deposits, and money market mutual funds, making its total value significantly larger than M1, often about four times as large.

Which of the Following Statements Is TRUE About M2