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Which one of the following is not included in what the U.S. government defines as M2?...

Question

Which one of the following is not included in what the U.S. government defines as M2?...

Which one of the following is not included in what the U.S. government defines as M2? O Checkable deposits. O Government bond

Which one of the following is not included in what the U.S. government defines as M2? O Checkable deposits. O Government bonds held by the public. O Saving accounts. O Currency in circulation and money held by the public.

Answers

Option-2

Money supply 2 does not include government bonds because they are debt instruments and they are not liquid. Which means they can not be used to make payments also they are not easily convertible. M2 includes all the money in circulation.


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