How are credit card balances treated in M1 as compared to M2?
A)They are included in M1 but not M2.
B)They are included in M2 but not M1.
C)They are included in M1 and M2.
D)They are included in neither M1 nor M2.

Question

Quizplus · Accepted Answer

Credit card balances are not considered money and are not included in either M1 or M2. M1 includes physical currency and demand deposits, while M2 includes M1 plus savings accounts and other near-money assets.

How Are Credit Card Balances Treated in M1 as Compared