Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange? Helpful Hint: which category of the Money Supply is the most liquid? A. M1 B. M2 C. Neither M1 nor M2 D. M1 and M2
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M1 includes currency in circulation (notes and coins held by the public) and demand deposits (checking accounts). M2 includes M1 plus savings deposits, small-time deposits, and money market funds. Show more…
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