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What Is the Difference Between the M1 and M2 Definitions

Question 30

Multiple Choice

What is the difference between the M1 and M2 definitions of money?


A) The M1 definition includes currency in circulation;the M2 definition does not.
B) The M2 definition includes notice deposits and personal term deposits.
C) The M2 definition includes government bonds.
D) The M2 definition includes cash held by commercial banks.
E) The M2 definition includes certificates of deposit

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