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17 June, 08:55

Which of the following is included in M2 but not M1? A. Traveler's checks B. Currency C. Checking account deposits at banks D. Money market deposit accounts in banks

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  1. 17 June, 12:51
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    The correct answer is D

    Explanation:

    M2 is the measure or the evaluation of the money supply which comprise of the checking deposits, convertible near money and cash. It is broader evaluation of the money supply that of M1.

    M1 involves those assets which are liquid in nature like traveler's checks, cash and checkable or demand deposits. Where M2 comprise of the M1 in addition some less liquid assets, which involve money market funds, time deposits and certificates of deposit (COD).
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Home » Business » Which of the following is included in M2 but not M1? A. Traveler's checks B. Currency C. Checking account deposits at banks D. Money market deposit accounts in banks
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