The money aggregate M2 includes:
A) large denomination time deposits.
B) stock and bond mutual fund shares.
C) savings deposits but not money market deposit accounts.
D) M1.

Question

Quizplus · Accepted Answer

M2 includes M1 (which consists of cash, demand deposits, and other liquid deposits, including savings deposits and money market deposit accounts) as well as near money, which includes savings deposits, money market deposit accounts, and small denomination time deposits, but it does not include large denomination time deposits, stock, or bond mutual fund shares.

The Money Aggregate M2 Includes