M1 differs from M2 because ________.
A) M1 includes demand deposits and M2 does not
B) M1 includes currency held by the nonbank public and M2 includes only currency held by banks
C) M1 includes non interest-bearing checking accounts and M2 includes interest bearing time deposit accounts
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

M1 includes non interest-bearing checking accounts, while M2 includes interest-bearing time deposit accounts, along with all components of M1.

M1 Differs from M2 Because ________