Which of the Following Is Included in M2 but NOT

question 89

Multiple Choice

Which of the following is included in M2 but NOT in M1?

• A) small-denomination time deposits
• B) transaction deposits
• C) currency
• D) traveler's checks

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Definitions:

Yield Curve

A graphical representation showing the relationship between the interest rates of bonds of the same credit quality but different maturities.

Holding Period

The duration of time an investment is held before being sold.

Modified Duration

A measure that estimates how the price of a bond will change in response to a change in interest rates, adjusting for the bond's yield to maturity.

Convexity

The curvature of the price–yield relationship of a bond.