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

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

Quizplus · Accepted Answer

Treasury bills are not included in either M1 or M2. M1 includes the most liquid forms of money, such as physical currency and demand deposits, while M2 includes M1 plus slightly less liquid forms of money, such as savings deposits and small time deposits. Treasury bills are short-term debt securities issued by the government, but they are not considered to be part of the money supply.

In Which of the Following Monetary Aggregates Are Treasury Bills