Select all that applyWhich of the following would be included in the M-2 money supply?Multiple select question.savings accountsbond investmentsmoney market accountscertificates of deposit
Question
Select all that applyWhich of the following would be included in the M-2 money supply?Multiple select question.savings accountsbond investmentsmoney market accountscertificates of deposit
Solution
The M-2 money supply includes:
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Savings accounts: These are included in the M-2 money supply because they are highly liquid and can be easily converted into cash.
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Money market accounts: These are also included in the M-2 money supply. They are similar to savings accounts but usually require a higher minimum balance and offer a higher interest rate.
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Certificates of deposit: These are included in the M-2 money supply as well. They are time deposits at banks or credit unions with a specific, fixed term and usually offer a fixed interest rate.
Bond investments are not included in the M-2 money supply. They are considered a form of investing rather than a form of money.
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