Which of the following is included in M2 but not in M1?
A)demand deposits
B)corporate bonds
C)large time deposits
D)money market mutual funds

Question

Quizplus · Accepted Answer

M2 includes all the components of M1, plus some additional types of funds that are not as liquid as M1. Money market mutual funds are included in M2 but not in M1. Choice A is incorrect because demand deposits are included in both M1 and M2. Choice B is incorrect because corporate bonds are not considered part of the money supply. Choice C is incorrect because large time deposits are included in M2, but they are also part of M1 as they can easily be converted into currency.

Which of the Following Is Included in M2 but Not