Which of the following is included in M2, but not included in M1?
A) currency held outside banks
B) travelers checks
C) demand deposits
D) savings accounts

Question

Quizplus · Accepted Answer

M2 includes all components of M1 (currency held in banks, demand deposits, travelers checks), as well as additional components such as savings accounts, money market funds, and time deposits of less than $100,000. Therefore, savings accounts (D) are included in M2 but not M1.

Which of the Following Is Included in M2, but Not