Q 15

M1 differs from M2 in that A) M1 includes currency and balances held in chequing accounts,which are not included in M2. B) M2 includes personal deposits and non-personal demand and notice deposits,which are not included in M1. C) M2 includes small savings accounts,and money market mutual funds,which are not included in M1. D) M1 is a broader measure of the money supply than M2. E) the assets in M2 are more liquid than the assets in M1.

Multiple Choice