Question

Which of the following is included in both M1 and M2?

A) Currency
B) Savings deposits
C) Small-denomination time deposits
D) Money market deposit accounts

Answer 1

Currency is included in both M1 and M2.

Step-by-step explanation:

M1 and M2 are two measures of the money supply. M1 includes currency, demand deposits (checking accounts), and traveler's checks. M2, on the other hand, includes everything in M1 plus savings deposits, time deposits like certificates of deposit, and money market funds.

Therefore, the answer to your question is A) Currency since it is included in both M1 and M2.