**Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.**| Example | M1 | M2 ||-------------------------------------------------------------------------|----|----|| Maria has $6,000 in a six-month certificate of deposit (CD). | ☐ | ☐ || Edison has a roll of quarters that he just withdrew from the bank to do laundry. | ☐ | ☐ || Kevin has $2,000 in a savings account. | ☐ | ☐ |This table provides examples where you are asked to classify each scenario into either M1 or M2 categories. M1 often refers to the money supply that includes physical currency and demand deposits, whereas M2 includes all of M1 plus savings accounts, small time deposits, and retail money market accounts.

The M1 and M2 are two different measures of the supply of money in the economy. The M1 is the narrow…

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. Example M1 M2 Maria has $6,000 in a six-month certificate of deposit (CD). Edison has a roll of quarters that he just withdrew from the bank to do laundry. Kevin has $2,000 in a savings account.

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. Example M1 M2 Maria has $6,000 in a six-month certificate of deposit (CD). Edison has a roll of quarters that he just withdrew from the bank to do laundry. Kevin has $2,000 in a savings account.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

**Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.**

| Example | M1 | M2 |
|-------------------------------------------------------------------------|----|----|
| Maria has $6,000 in a six-month certificate of deposit (CD). | ☐ | ☐ |
| Edison has a roll of quarters that he just withdrew from the bank to do laundry. | ☐ | ☐ |
| Kevin has $2,000 in a savings account. | ☐ | ☐ |

This table provides examples where you are asked to classify each scenario into either M1 or M2 categories. M1 often refers to the money supply that includes physical currency and demand deposits, whereas M2 includes all of M1 plus savings accounts, small time deposits, and retail money market accounts.

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