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Which of the following is included in M2 but not in M1?

A) NOW accounts
B) Demand deposits
C) Currency
D) Money market mutual fund shares (retail)

User Rob Scott
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1 Answer

3 votes

Final answer:

Money market mutual fund shares are included in M2 but not in M1.

Step-by-step explanation:

M1 money supply includes currency in circulation, demand deposits (checking accounts), and NOW (negotiable order of withdrawal) accounts. M2 money supply includes M1 plus savings deposits, money market funds, certificates of deposit, and other time deposits.

Given the options, Money market mutual fund shares (retail) is included in M2 but not in M1. This is because money market mutual fund shares are classified as other time deposits, which are included in M2 but not in M1.

User Vanlightly
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