M$1$ differs from M$2$ in that

Multiple Choice

the assets in M$2$ are more liquid than the assets in M$1.$

M$2$ includes small$-$denomination time deposits and retail money market funds that are not included in M$1.$

M$1$ includes currency and balances held in both checking and savings accounts, which are not included in M$2..$

M$1$ is a broader measure of the money supply than M$2.$