Final answer:
The M2 money supply includes savings deposits, money market funds, certificates of deposit (CDs), and other time deposits. Currency, checking accounts, and cryptocurrency are not included in M2; currency and checking accounts are part of M1, and cryptocurrency is outside of traditional M1 and M2 categories.
Step-by-step explanation:
Types of money included in the M2 money supply category are broader than the M1 category and include some additional forms of money. Specifically, M2 includes all of M1, which comprises currency in circulation and checkable (demand) deposits, plus several other types of financial assets. The components of M2 are:
Savings Deposits: These are bank accounts from which money can be withdrawn at any time, but they do not allow for the direct writing of checks.
Money Market Funds: These funds pool together individual investments and usually invest in short-term government bonds or other relatively safe securities.
Certificates of Deposit (CDs): These are time deposits that require an agreement to leave the money in the bank for a set period to earn a specified interest rate.
Other Time Deposits: Similar to CDs, these are deposits that need to stay in the bank for a predetermined period.
Based on this classification, the correct answers from the given options would be:
Savings accounts (B)
Certificates of Deposit - CDs (D)
Not included in M2 from the options provided are:
Currency (A) - This is part of M1.
Checking accounts (C) - These are also a component of M1.
Cryptocurrency (D) - This is not considered part of the traditional M1 or M2 money supply categories.