M1 Differs from M2 in That

question 1

Multiple Choice

M1 differs from M2 in that

• A) M1 includes currency and balances held in chequing accounts,which are not included in M2.
• B) M2 includes personal deposits and non-personal demand and notice deposits,which are not included in M1.
• C) M2 includes small savings accounts,and money market mutual funds,which are not included in M1.
• D) M1 is a broader measure of the money supply than M2.
• E) the assets in M2 are more liquid than the assets in M1.

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