Question

$ 15 billion in small minus denomination time deposits$15 billion in small−denomination time deposits is counted in A. Upper M 2 onlyM2 only. B. neither Upper M 1 nor Upper M 2neither M1 nor M2. C. both Upper M 1 and Upper M 2both M1 and M2. D. Upper M 1 onlyM1 only.

Answer 1

Only M2

Step-by-step explanation:

M1 is composed by currency, coins, checking accounts, traveler check and others forms of cash

While M2 correspond to M1 + near cash which are time deposits, saving account and other form like that

Hence, 15 billion in time deposits will be a near cash thus, M2 only