Final answer:
The M2 Money Supply includes Savings Deposits, Money Market Funds, Certificates of Deposit, and Other Time Deposits, in addition to all the components of M1 such as currency in circulation and demand deposits.
Step-by-step explanation:
The Modigliani M2 measure and the Treynor T2 measure seem to be confused with financial terminologies that are not directly related to the M2 money supply. The student may be referring to measures of financial performance or risk-adjusted returns, such as Modigliani's M-squared measure or Treynor's ratio, rather than components of the money supply. However, answering the actual question regarding components of money supply, the M2 Money Supply includes several components beyond M1, which consists of currency in circulation and demand deposits (or checking accounts). Specifically, M2 includes M1 plus Savings Deposits, Money Market Funds, Certificates of Deposit (CDs), and Other Time Deposits. These components represent more liquid forms of money that are not as immediately accessible as the cash or checking accounts of M1, but can still be converted to cash relatively quickly.