Deposits in savings accounts are included in
A) M1.
B) M2.
C) both M1 and M2.
D) neither M1 nor M2.

Question

Quizplus · Accepted Answer

Savings accounts are included in M2, which includes M1 (currency, traveler's checks, demand deposits, and other checkable deposits) plus savings deposits, small time deposits, and money market mutual fund shares. M1 only includes currency, traveler's checks, demand deposits, and other checkable deposits.

Deposits in Savings Accounts Are Included in