The M2 measure of money consists of all the assets in M1 plus assets that are
A) usable in making payments but at a much lesser cost than currency or chequing accounts
B) usable in making payments but at a much greater cost than currency or chequing accounts
C) only denominated in foreign currency.
D) taxed at different rates as mandated by Canadian banking laws.
E) taxed at identical rates as mandated by Canadian banking laws.

Question

Quizplus · Accepted Answer

M2 includes M1 (currency and checking accounts) plus savings accounts, time deposits, and other near-money assets that are less liquid and usable for payments at a greater cost.

The M2 Measure of Money Consists of All the Assets