If we look at the components of M2,we find that
A)money market funds are the largest component.
B)savings deposits are the largest component.
C)currency is the largest component.
D)banks' reserves are the largest component.
E)loans are the largest component.

Question

Quizplus · Accepted Answer

According to the Federal Reserve, as of February 2021, savings deposits make up the largest component of M2, accounting for 24.8% of the total. Money market funds are the second largest component at 18.1%, followed by small time deposits (15.3%), and currency (10.8%). Banks' reserves and loans are not explicitly listed as components of M2.

If We Look at the Components of M2,we Find That