Question

What is M2?

a. easily accessible funds, money market accounts, and savings instruments.
b. easily accessible funds, government securities, and large time deposits.
c. a measure of the funds that are easily accessible or in circulation.
d. large time deposits, money market accounts, and savings instruments.

Answer 1

M2 is easily accessible funds, money market accounts, and saving instruments. It's basically ALL funds in M1 plus Money Market Accounts and Saving Instruments.

Answer 2

a. easily accessible funds, money market accounts, and savings instruments.

Step-by-step explanation:

M2 is a proportion of the cash supply that incorporates money, checking stores, and effectively convertible near money.

M2 is a more extensive proportion of the cash supply that M1, which simply incorporate money and checking deposits.