Which of the following items are included in money supply M2 but not M1?

Question

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Savings deposits are included in money supply M2, but not in M1. M1 only includes the most liquid forms of money, such as physical currency and checkable deposits. M2 includes M1 plus less liquid forms of money, such as savings deposits, money market funds, and small time deposits. Federal Reserve notes and coins are included in both M1 and M2, and checkable deposits are included in both as well.

Which of the Following Items Are Included in Money Supply