What is included in the M2 money supply?

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 not included in M2 money supply?

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.

Which of the following is included in M2?

M2 includes all of M1, plus savings deposits, time deposits like certificates of deposit, and money market funds.

What is not included in either M1 or M2?

The assets that are not included in either M1 or M2 are: items 1, 5, 9, and 10.

Which asset is not included in M2?

M2 is a broader money classification than M1 because it includes assets that are highly liquid but are not cash. A consumer or business typically doesn’t use savings deposits and other non-M1 components of M2 when making purchases or paying bills, but it could convert them to cash in relatively short order.

Which is not included in M2?

Are savings accounts M1 or M2?

M1 includes those assets that are the most liquid such as cash, checkable (demand) deposits, and traveler’s checks. M2 includes M1 plus some less liquid (but still fairly liquid) assets, including savings and time deposits, certificates of deposit, and money market funds.

What makes up the M2 measure of money supply?

M2 is a measure of the money supply that includes cash and checking deposits (M1) as well as near money.

Which is an ingredient in the measure of m2?

Another ingredient of M2 are the relatively small (that is, less than about $100,000) certificates of deposit (CDs) or time deposits, which are accounts that the depositor has committed to leaving in the bank for a certain period of time, ranging from a few months to a few years, in exchange for a higher interest rate.

What is the difference between M1 and M2 money?

M1 and M2 money have several definitions, ranging from narrow to broad. M1 = coins and currency in circulation + checkable (demand) deposit + traveler’s checks. M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits.

When do you use m2 for savings deposits?

A consumer or business typically doesn’t use savings deposits and other non-M1 components of M2 when making purchases or paying bills, but it could convert them to cash in relatively short order.

What is included in the M2 money supply? 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…