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