The M2 measure of money consists of the sum of
A) chequing deposits,saving deposits at banks,and foreign currency deposits.
B) currency,non-personal demand and notice deposits,and personal deposits.
C) currency and non-personal demand and notice deposits.
D) deposits at non-bank financial institutions,and money market mutual funds.
E) non-personal term deposits,and foreign currency deposits at banks.

Question

Quizplus · Accepted Answer

The M2 measure of money includes currency (notes and coins) in circulation (personal deposits), non-personal demand and notice deposits (such as deposits in savings account), and personal deposits (such as deposits in a fixed-term account, but also includes deposits in foreign currency). Other options in the answer choices are incorrect as they do not include all the components of the M2 money supply measure.

The M2 Measure of Money Consists of the Sum of