For a small-denomination certificate of deposit to be included in M2 it must be a denomination of less than
A) $2,500,000.
B) $100,000.
C) $1 trillion
D) $1,000.

Question

Quizplus · Accepted Answer

Small-denomination certificates of deposit (CDs) included in M2 are those under $100,000. M2 includes savings deposits, small-denomination time deposits (under $100,000), and retail money market mutual funds, in addition to all the components of M1 (which covers more liquid forms of money such as cash and checking deposits).

For a Small-Denomination Certificate of Deposit to Be Included in M2