Which of the following is included in M2, a broader measure of money supply compared to M1?

CA Foundation · Business Economics · RTP · September 2024
Which of the following is included in M2, a broader measure of money supply compared to M1?
(A) A. Currency in circulation
(B) B. Savings deposits
(C) C. Demand deposits
(D) D. Traveler's checks

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Savings deposits

Topics: Money Market

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