Which one of the following is part of the M2 definition of the money supply, but not part of M1?
A) checkable deposits
B) currency held in banks
C) currency in circulation
D) small time deposits of less than $100,000

Question

Quizplus · Accepted Answer

Small time deposits of less than $100,000 are part of M2 but not M1. M1 only includes the most liquid forms of money, such as currency and checkable deposits, while M2 includes slightly less liquid forms of money, such as small time deposits and certain types of savings deposits.

Which One of the Following Is Part of the M2