Currency is included in
A) M1 only.
B) M2 only.
C) both M1 and M2.
D) neither M1 nor M2.

Name: Currency is included in A) M1 only. B) M2 only. C) both M1 and M2. D) neither M1 nor M2.
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Question

Quizplus · Accepted Answer

Currency, which includes paper money and coins, is included in both M1 and M2. M1 includes currency in circulation, demand deposits, and traveler's checks, while M2 includes all of M1 plus savings deposits, small-denomination time deposits, and retail money market mutual fund shares.

Currency Is Included in