Respuesta :
Answer:
D) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares.
Explanation:
M1 includes money in circulation, travellers check, money in checking accounts and money deposited in the banks.
M2 includes m1 + savings accounts, small time deposits, and money markets.
M1 is thenarrow definition of money. M2 is the broader definition of money .
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The correct option is D.
D) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares.
The following information should be considered:
- M1 includes money in circulation, travellers check, money in checking accounts and money deposited in the banks.
- M2 includes m1 + savings accounts, small time deposits, and money markets.
Therefore we can say that M1 is the narrow definition of money while on the other hand M2 is the broader definition of money.
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