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M1 Differs from M2 in That

Question 2

Multiple Choice

M1 differs from M2 in that


A) M1 includes currency and balances held in chequing accounts,which are not included in M2.
B) M2 includes personal deposits and non-personal demand and notice deposits,which are not included in M1.
C) M2 includes small savings accounts,and money market mutual funds,which are not included in M1.
D) M1 is a broader measure of the money supply than M2.
E) the assets in M2 are more liquid than the assets in M1.

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