Why has the distinction between M1 and M2 been blurred over time?

Question

Quizplus · Accepted Answer

The blurring of the distinction between M1 and M2 can be attributed to the ease with which depositors can transfer funds between accounts. This has resulted in some of the components of M2, such as savings deposits, becoming relatively more liquid and resembling components of M1. None of the other options provided explanations that support the blurring of the distinction between M1 and M2.

Why Has the Distinction Between M1 and M2 Been Blurred