Question
Which of the following is included in M2 but not in M1+? a. currency O b. demand deposits O c term deposits d. corporate bond
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Answer #1

D is right option corporate bond

M1 is defined as they narrow measure of the money supply that includes currency in circulation, demand deposit accounts, NOW accounts, automatic transfer savings (ATS) accounts, traveler's checks, and checkable money market accounts but it doesn't include bonds.

money market mutual fund is included in M2 it is an investment fund that pools the assets of investors and puts the assets into debt securities that mature in less than 1 year: short-term bank CDs, corporate bonds, and 6-month Treasury bills but here its clearly says short term bank deposit SO term depsite is confusing.

So i choose option D

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