In which of the following monetary aggregates are Treasury Bills included? A)M₁ only B)M₂ only C)Both M₁ and M₂ D)Neither M₁ nor M₂

Question

Quizplus · Accepted Answer

Treasury Bills are short-term government securities and are not included in the narrow money supply definitions like M1 (which typically includes currency in circulation and demand deposits). They are considered part of broader monetary aggregates that include more liquid assets, but the specific aggregates mentioned (M₁, M₂) are not standard classifications for monetary aggregates, and thus, by standard definitions, Treasury Bills would not be included in these.

In Which of the Following Monetary Aggregates Are Treasury Bills