Question

Savings account​ balances, small-denomination time​ deposits, and noninstitutional money market fund shares are A. included in both M1 and M2. B. financial assets that are not included in the money supply. C. included only in M2. D. included only in M1.

Answer 1

Answer: included only in M2

Explanation: because M2 includes savings accounts, small-denomination time deposits (such as

certificates of deposit (CDs)), money market deposit accounts in banks, and noninstitutional money

market fund shares.