Which financial asset belongs to M2 but not to M1+?

Question

Quizplus · Accepted Answer

A savings account falls under the category of M2 money supply but not under M1+. M1+ includes only currency, chequable deposits and traveler's checks, while M2 includes savings deposits, money market mutual funds, and other time deposits alongside M1+. Therefore, a savings account is the correct answer as it belongs to M2 but not to M1+. Option B is incorrect as a chequable deposit is already included in M1+, and the option D is irrelevant as it is not a financial asset. Option C is incorrect as currency is part of both M1+ and M2 money supply.

Which Financial Asset Belongs to M2 but Not to M1