Large time deposits (over $100,000) are included in which of the following money supply definitions?
A)M1
B)M2
C)M3
D)all of the above

Question

Quizplus · Accepted Answer

Large time deposits are included in M3, which includes M2 plus additional types of financial assets such as large time deposits and other institutional deposits. M1 only includes the most liquid forms of money, such as cash and demand deposits. M2 includes M1 plus less liquid forms of money, such as savings deposits and small time deposits, but still does not include large time deposits.

Large Time Deposits (Over $100,000) Are Included in Which of the Following