Why has M2 grown more quickly than M1 in recent decades?
A) Currency in circulation has declined.
B) People own more shares of stock than in the past.
C) The amount of funds in CDs and money market mutual funds shares has grown faster than currency or checking deposits.
D) Most people use debit cards instead of checking accounts.

Question

Quizplus · Accepted Answer

The growth of M2 has been driven by the increasing popularity of various types of time and savings deposits, including money market mutual funds. These types of deposits have grown faster than traditional currency and checking deposits that make up M1.

Why Has M2 Grown More Quickly Than M1 in Recent