The largest single component of M2 is
A) demand deposits.
B) savings deposits.
C) money market mutual funds.
D) currency held by the public.

Question

Quizplus · Accepted Answer

Savings deposits are the largest component of M2, as M2 includes M1 (currency, demand deposits, and other liquid deposits) plus savings deposits, small-denomination time deposits, and retail money market mutual fund shares. Savings deposits make up the largest portion of these additional components.

The Largest Single Component of M2 Is