Going from M0 to M1 and to M2,what is the principle?

Question

Quizplus · Accepted Answer

Going from M0 (physical currency) to M1 (physical currency plus demand deposits) and then to M2 (M1 plus savings deposits, money market funds, and other time deposits) represents a shift from the most usable form of money for transaction purposes to less usable forms for transaction purposes but more usable forms as a store of value. M2 includes more assets that are less liquid and less convenient for transaction purposes, but that offer higher rates of return and are better suited for long-term savings.

Going from M0 to M1 and to M2,what Is the Principle