If we look at the components of M2, we find that
A) money market funds are the largest component.
B) savings deposits are the largest component.
C) currency is the largest component.
D) banks' reserves is the largest component.
E) loans are the largest component.

Question

Quizplus · Accepted Answer

According to the Federal Reserve, as of June 2021, savings deposits make up 35.8% of M2, which is the largest component. Money market funds make up 16.4%, currency makes up 10.3%, banks' reserves make up 9.3%, and loans make up 3.5%.

If We Look at the Components of M2, We Find