The definition of M₂ includes M₁ (currency and demand deposits) plus savings accounts, certain money-market securities, and
A) the value of stock owned by individuals.
B) the value of homes owned by individuals.
C) time deposits of more than $100,000.
D) certificates of deposit of less than $100,000.
E) foreign currency deposited in U.S. banks.

Question

Quizplus · Accepted Answer

M2 includes M1 (currency and demand deposits) plus savings accounts, money-market accounts, and other near monies, including certificates of deposit (CDs) of less than $100,000, but does not include investments in stocks, the value of homes, large time deposits, or foreign currency holdings.

The Definition of M₂ Includes M₁ (Currency and Demand Deposits)