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Which measurement of money supply are checkable deposits included in? - only M1 BUT NOT M2...

Which measurement of money supply are checkable deposits included in?

- only M1 BUT NOT M2

-ONLY m2 but not m1

-neither m1 nor m2

- both m1 and m2

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Answer #1

Since

M1=Currency+ + traveller’s checks+ checkable deposits

M2=M1 + saving and money market deposits accounts + non-institution Money market funds + small denomination time deposits.

Since Checkable deposit is the part of M1 and M1 is part of M2. Hence checkable deposit is part of both M1 and M2.

Hence option fourth is the correct answer.

Fourth; both m1 and m2

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