The M2 Definition of the Money Supply Is Based on the Concept

question 212

Multiple Choice

The M2 definition of the money supply is based on the concept that

• A) M1 is a small number and should be increased in size.
• B) many types of deposits can be used as both payments and stores of value.
• C) checking deposits are used for payments, and therefore, not part of M1.
• D) cash is not used for the majority of payments.

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