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Select all that applyWhich of the following would be included in the M-2 money supply?Multiple select question.savings accountscertificates of depositbond investmentsmoney market accounts

Question

Select all that applyWhich of the following would be included in the M-2 money supply?Multiple select question.savings accountscertificates of depositbond investmentsmoney market accounts

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Solution

The M-2 money supply includes:

  1. Savings accounts: These are included in the M-2 money supply because they are highly liquid and can be easily converted into cash.

  2. Certificates of deposit: These are also included in the M-2 money supply. Although they have a maturity date and may have penalties for early withdrawal, they can still be converted into cash.

  3. Bond investments: These are not included in the M-2 money supply. Bonds are considered a form of investment, not a form of money.

  4. Money market accounts: These are included in the M-2 money supply. They are similar to savings accounts, but they often require higher minimum balances and offer higher interest rates.

So, the items included in the M-2 money supply from the options given are savings accounts, certificates of deposit, and money market accounts.

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