The M2 and M2+ definitions of the money supply concentrate on the ________ function of money.

Question

Quizplus · Accepted Answer

The M2 and M2+ definitions of the money supply focus on the medium-of-exchange function of money. This function refers to money's ability to be used to facilitate transactions and purchases. The other functions of money (store of value, unit of account, accounting, and deposit-creation) are not as relevant to these definitions of the money supply.

The M2 and M2+ Definitions of the Money Supply Concentrate