Final answer:
A 6-month CD is included in M2 but not M1, available credit on a HELOC is neither M1 nor M2, money in a savings account is in M2, and coins in a coin jar are part of both M1 and M2.
Step-by-step explanation:
The categories M1 and M2 are parts of the money supply used to measure the amount of money in circulation in an economy. M1 includes the most liquid forms of money, such as cash and checking deposits. M2 includes M1 as well as forms of money that are less liquid, such as savings accounts and money market accounts.
In relation to the items listed:
- a) A 6 month CD that matures in December is included in M2 but not in M1 since it is less liquid and cannot be spent immediately.
- b) Available credit on a HELOC (Home Equity Line Of Credit) is neither in M1 nor M2 because it represents potential borrowing, not actual money in circulation.
- c) Money in a savings account is included in M2, as it is less liquid compared to currency but still part of the money supply.
- d) Coins in a coin jar are part of M1, since they are currency in circulation and therefore very liquid. They are also included in M2 since M2 encompasses all of M1.
Thus, in summary:
- 6 mos CD: M2 only
- Available credit on HELOC: Neither M1 nor M2
- Money in savings account: M2 only
- Coins in coin jar: Both M1 and M2