Consider the following money supplies: currency and coins held by the nonbanking public; and traveller's cheques, personal and nonpersonal chequable deposits and savings deposits, and personal time deposits held at chartered banks.Which money aggregate do these supplies belong to?

Question

Quizplus · Accepted Answer

The supplies mentioned - currency and coins held by the nonbanking public; traveller's cheques, personal and nonpersonal chequable deposits and savings deposits, and personal time deposits held at chartered banks - belong to the M2 money aggregate. M2 includes all components of M1 (currency, coins, chequable deposits, and traveller's cheques) as well as savings deposits and time deposits that are less than $100,000.

Consider the Following Money Supplies: Currency and Coins Held by the Nonbanking