Question

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. Example M1 M2 Eileen has $7,000 in a two-year certificate of deposit (CD). Clancy has $25,000 in a money market account. Alex has $1,200 in a checking account.

Answer 1

Answer and Explanation:

The classification is as follows;

The first two examples comes in only M2 i.e. Eileen example and Clancy example as M1 denotes M1 + liquid assets

while on the other hand, the third example comes in M1 and M2 i..e Alex example as M1 denotes thenotes, coins & checking deposits and M2 described above

Hence, in this way it should be belong