Question: The difference between M1 and M2 is given by which of the following? a. M1 includes paper currency, coins, gold, and silver, whereas M2 does

The difference between M1 and M2 is given by which of the following?

a. M1 includes paper currency, coins, gold, and silver, whereas M2 does not contain gold and silver.

b. M1 is made up of currency, traveler’s checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits and time deposits.

c. M1 is limited to currency, whereas M2 contains M1 plus traveler’s checks and money in checkable accounts.

d. M1 includes currency and traveler’s checks, whereas M2 contains M1 plus money in checking accounts.

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