Question

Answer the question on the basis of the following list of assets:1. Large-denominated ($100,000 and more) time deposits2. Noncheckable savings deposits3. Currency (coins and paper money) in circulation4. Small-denominated (less than $100,000) time deposits5. Stock certificates6. Checkable deposits7. Money market deposit accounts8. Money market mutual fund balances held by individuals9. Money market mutual fund balances held by businesses10. Currency held in bank vaultsRefer to the above list. The M2 definition of money comprises(Points : 1) items 2, 3, 4, 6, 7, 8, and 10.items 3, 4, 5, and 6.items 2, 3, 4, 6, 7, and 8.all of the items listed.

Answer 1

Answer: Items 2, 3, 4, 6, 7, and 8

Explanation:

The M2 definition of money includes M1 money and then some other types of instruments that are quite highly liquid and so can be converted to liquid cash quickly if needed.

M2 includes:

   2. Noncheckable savings deposits

   3. Currency (coins and paper money) in circulation

   4. Small-denominated (less than $100,000) time deposits  

   6. Checkable deposits

   7. Money market deposit accounts

   8. Money market mutual fund balances held by individuals