Which of the following is NOT part of M1 but is included in M2?
A) currency
B) small-denomination certificates of deposits
C) traveler's checks
D) cash

Question

Quizplus · Accepted Answer

Small-denomination certificates of deposits are not part of M1, which includes only highly liquid forms of money such as currency, traveler's checks, and demand deposits. However, they are part of M2, which includes M1 plus less liquid forms of money such as savings deposits and small-denomination time deposits.

Which of the Following Is NOT Part of M1 but Is