Savings deposits are included in
A)M1 but not M2.
B)M2 but not M1.
C)M1 and M2.
D)neither M1 nor M2.

Question

Quizplus · Accepted Answer

Savings deposits are included in M2 but not in M1. M1 includes only the most liquid assets such as physical currency, demand deposits, and traveler's checks. M2 includes all of M1 plus other assets that can be easily converted into cash, such as savings deposits, money market mutual funds, and small denomination time deposits.

Savings Deposits Are Included in