Users' questions

Which are included in M2 but not included in M1?

Which are included in M2 but not included in M1?

M1 includes those assets that are the most liquid such as cash, checkable (demand) deposits, and traveler’s checks. M2 includes M1 plus some less liquid (but still fairly liquid) assets, including savings and time deposits, certificates of deposit, and money market funds.

What is included in M1 money supply quizlet?

Money is commonly computed into two types of money supplies: M1, which includes currency, demand deposits, traveler’s checks, and other checkable deposits, and M2, which includes M1 (all of the assets in M1), savings accounts, retail money funds (money market mutual funds), and small-denomination time deposits.

What kinds of money are included in M1 and M2 quizlet?

M2 consists of M1 (currency held by the public plus checkable deposits) plus savings deposits, money market mutual funds, and small time deposits. M1 consists of currency held by the public and checkable deposits while M2 includes M1 but adds savings deposits, money market mutual funds, and small time deposits.

What is included in M2 but not in M1 quizlet?

M2 includes everything in M1 plus a few additional assets which are less liquid than those in M1. These assets, which are included in M2 but not M1, are savings deposits, small time deposits, money market mutual funds and a few other minor categories.

What is the M2 money supply?

M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near money. M2 is a broader measure of the money supply that M1, which just include cash and checking deposits.

What is the definition of m2 in economics?

Economic Definition of M2. Defined. Term M2 Definition: The medium-range monetary aggregate for the U.S. economy containing the combination of M1 (currency and checkable deposits) and short-term, small denomination near monies.

What is the definition of M1 economics?

Economic Definition of M1. Defined. Term M1 Definition: The narrow-range monetary aggregate for the U.S. economy containing the combination of currency (and coins) issued by government and held by the nonbank public and checkable deposits issued by banking institutions.