What Is the Difference Between the M1 and M2 Definitions

question 13

Multiple Choice

What is the difference between the M1 and M2 definitions of money?

• A)The M1 definition includes currency in circulation;the M2 definition does not.
• B)The M2 definition includes notice deposits and personal term deposits.
• C)The M2 definition includes government bonds.
• D)The M2 definition includes cash held by commercial banks.
• E)The M2 definition includes certificates of deposit

---

Definitions:

Developmental

Pertaining to the process of growth or improvement over time, often used in the context of personal, social, economic, or biological development.

Environmental Destruction

refers to the extensive damage or deterioration of the natural environment through human activities.

Competitive System

A framework within which businesses compete for market share, involving the dynamics of competition, strategies, and market forces.

Critical Approach

A methodology in social sciences and humanities that examines underlying social structures and power dynamics.