Small time deposits are included in
A)M1 but not M2.
B)M2 but not M1.
C)M1 and M2.
D)neither M1 nor M2.

Question

Quizplus · Accepted Answer

Small time deposits are included in M2 but not M1. M1 includes only the most liquid forms of money, such as currency in circulation, demand deposits, and traveler's checks. M2 includes all the components of M1, as well as less liquid forms of money, such as savings deposits, time deposits (such as certificates of deposit), and money market funds.

Small Time Deposits Are Included in