M2 is
A) smaller than M1.
B) equal to M1, but only when all three functions of money apply.
C) equal to M1, given full employment.
D) larger than M1.

Name: M2 is A) smaller than M1. B) equal to M1, but only when all three functions of money apply. C) equal to M1, given full employment. D) larger than M1.
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Question

Quizplus · Accepted Answer

M2 includes all of M1 plus certain types of deposits, such as savings deposits, small time deposits, and retail money market mutual fund shares, which makes it larger than M1.

M2 Is