Savings deposits are
A) part of M1 but not part of M2.
B) part of both M1 and M2.
C) not part of M1 but are part of M2.
D) not part of either M1 or M2.

Question

Quizplus · Accepted Answer

Savings deposits are not included in M1, which includes only the most liquid forms of money such as currency and checking account deposits. However, savings deposits are included in M2, which includes M1 plus slightly less liquid forms of money such as savings deposits and small time deposits.

Savings Deposits Are