Question

Which of the following is included in M2 but not M1? A. Currency B. Money market deposit accounts in banks C. Checking account deposits at banks D. Traveler's checks The Federal Reserve uses two definitions of the money supply, M1 and M2, because A. M2 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the money supply. B. M1 is a narrow definition focusing more on liquidity, whereas M2 is a broader definition of the money supply. C. M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of value function. D. M2 is also known as cash and cash equivalent, whereas M1 represents the standard of deferred payment function.

          Which of the following is included in M2 but not M1?
A.
Currency
B.
Money market deposit accounts in banks
C.
Checking account deposits at banks
D.
Traveler's checks
The Federal Reserve uses two definitions of the
money supply, M1 and M2, because
A.
M2 is a narrow definition focusing more on liquidity,
whereas M1 is a broader definition of the money supply.
B.
M1 is a narrow definition focusing more on liquidity,
whereas M2 is a broader definition of the money supply.
C.
M2 satisfies the medium of exchange function of money,
whereas M1 satisfies the store of value function.
D.
M2 is also known as cash and cash equivalent, whereas M1
represents the standard of deferred payment function.

Added by Karen D.

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