Eurodollars are included in
A)M1
B)M2
C)both the above
D)neither the above

Question

Quizplus · Accepted Answer

Eurodollars are not included in either M1 or M2. M1 includes only the most liquid forms of money, such as physical currency and checking accounts, while M2 includes M1 plus slightly less liquid forms of money, such as savings accounts and money market funds. Eurodollars, which are U.S. dollars deposited at foreign banks outside the United States, do not fall into either of these categories.

Eurodollars Are Included in