The definition of the money supply called M1 includes all of the assets included in the definition of M2.

Name: The definition of the money supply called M1 includes all of the assets included in the definition of M2.
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Quizplus · Accepted Answer

M1 includes only the most liquid forms of money (such as physical currency, traveler's checks, and demand deposits), while M2 includes M1 plus less liquid forms of money (such as savings accounts and small time deposits). Therefore, not all assets included in M2 are part of M1.

The Definition of the Money Supply Called M1 Includes All