The M2 measure of money is suggested by the ________ approach to measuring money.

Question

Quizplus · Accepted Answer

The M2 measure of money includes all components of M1 (currency in circulation, demand deposits, and other checkable deposits) along with less liquid components like savings deposits, small time deposits, and retail money market mutual fund shares. This measure is focused on the level of liquidity of the assets that can be easily converted into cash. Therefore, it suggests the liquidity approach to measuring money.

The M2 Measure of Money Is Suggested by the ________