All M₁ Assets Are Included in M₂

question 40

Essay

All M₁ assets are included in M₂.We will call those assets that are part of M₂ but not part of M₁,"M₂ assets".You have just received $5,000 that you must hold as either an M₁ asset or an M₂ asset.What are the costs and benefits of holding the $5,000 as an M₁ asset rather than as an M₂ asset? Explain.

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