The M2 measure of the money supply equals(A) M1 plus savings account balances plus smallminusdenomination time deposits.(B) savings account balances plus smallminusdenomination time deposits plus​ traveler's checks.(C) savings account balances plus smallminusdenomination time deposits plus noninstitutional money market fund shares.(D) M1 plus savings account balances plus small-denomination time deposits plus noninstitutional money market fund shares.

Respuesta :

Answer: Option (D) is correct.

Explanation:

Correct Option: M1 plus savings account balances plus small-denomination time deposits plus non-institutional money market fund shares.

M1 consists of:

M1 = currency with public + demand deposits + check able deposits + other deposits with RBI

M2 consists of:

M2 = M1 + post office saving A/C + small-denomination time deposits + non-institutional money market fund shares

Therefore, the monetary aggregate, M2, includes all the elements of M1, post office savings A/C, small-denomination time deposits and non-institutional money market fund shares.

Large denomination time deposits are included in M3 because it includes amounts greater than $100000.