Overnight repurchase agreements are not included in which of the following definition of the money supply?
A)M1
B)M2
C)M3
D)all of the above

Question

Quizplus · Accepted Answer

Overnight repurchase agreements are not included in the narrowest definition of the money supply, M1. M1 only includes the most liquid forms of money, such as physical currency, demand deposits, and traveler's checks. M2 includes all of the components of M1 plus savings deposits, small time deposits, and retail money market mutual funds. M3 is no longer an official measure of the money supply and includes all of the components of M2 plus large time deposits, institutional money market mutual funds, and some other large liquid assets.

Overnight Repurchase Agreements Are Not Included in Which of the Following