Question

Of the following, the largest is

A) money market deposit accounts.
B) demand deposits.
C) M1.
D) M2.

Answer 1

M2 is the largest among the given options because it includes a broader range of financial assets than M1.

Step-by-step explanation:

The largest among the given options is M2. M1 includes cash, checkable (demand) deposits, and savings, while M2 includes all of M1 plus time deposits, certificates of deposits, and money market funds. Therefore, M2 is a broader measure of money supply and encompasses a larger range of financial assets.