Table of Contents
What are the components of M 2?
M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near money. M2 is a broader measure of the money supply than M1, which just includes cash and checking deposits.
What are the components of M1?
M1 is the money supply that is composed of physical currency and coin, demand deposits, travelers’ checks, other checkable deposits, and negotiable order of withdrawal (NOW) accounts.
Whats included in M1 and M2?
M1 money supply includes those monies that are very liquid such as cash, checkable (demand) deposits, and traveler’s checks. M2 money supply is less liquid in nature and includes M1 plus savings and time deposits, certificates of deposits, and money market funds.
What is M2 and its components?
M2 is a measure of the U.S. money stock that includes M1 (currency and coins held by the non-bank public, checkable deposits, and travelers’ checks) plus savings deposits (including money market deposit accounts), small time deposits under $100,000, and shares in retail money market mutual funds.
What is M1 and M2 quizlet?
M2 consists of M1 (currency held by the public plus checkable deposits) plus savings deposits, money market mutual funds, and small time deposits. M1 consists of currency held by the public and checkable deposits while M2 includes M1 but adds savings deposits, money market mutual funds, and small time deposits.
What is the largest component of M2?
Transcribed image text: Question 160 The largest component of M2 is money market mutual funds.
What is the largest component of M1?
Notice that the largest component of M1, just over half, is the coin and currency in circulation. Traveler’s checks are an insignificant share at $7.5 billion. Demand deposits and other checkable deposits almost equally split the remaining shares of M1 at close to 25 percent each.
What are two components of M2 that are not components of M1?
What are two components of M2 that are not components of M1? Savings deposits and small-denomination time deposits.
Which of the following items is included in M2?
M2 includes all of M1, plus savings deposits, time deposits like certificates of deposit, and money market funds.
What are the components of M1 and M2 quizlet?
What are the components of M1 and M2? List them. M1 is the money supply measure composed of currency and checkable deposits. M2 is the money supply measure that includes M1 + savings deposits, money market mutual funds, and small-demonination time deposits (CDs).
How can the components that are part of M2 be described quizlet?
M2 money supply is the money supply that includes currency, checking accounts in banks, traveler’s checks, savings deposits, money market funds, and certificates of deposit. M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits.