Question

The most commonly quoted monetary aggregate is:

Answer 1

Answer: M2

Step-by-step explanation: M2 is the most commonly quoted monetary aggregate as it includes all the component of M1 plus assets that are not directly accepted as a means of payment.

`M2= Currency Notes and Coins + Checkable deposits + Travelers Checks + Saving Deposits+ Time Deposits + Shares in Mutual Funds+ Money Market Securities`

This monetary aggregate includes small denomination time deposits, shares in mutual funds and other money market securities. Thus, it is also called broad money.