**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 ||-----------------------------------------------------|----|----|| Charles has $3,000 in a savings account. | ☑ | ☑ || Juanita has $8,000 in a two-year certificate of deposit (CD). | | ☑ || Gilberto has $25,000 in a money market account. | | ☑ |This table helps illustrate the classification of different types of financial accounts in terms of the money supply components M1 and M2:- **M1** includes the most liquid forms of money, such as cash and checking accounts.- **M2** includes all of M1 plus savings accounts, time deposits like certificates of deposit (CDs), and money market accounts.

Money refers to anything that can be used as a common medium for the exchange of goods or services…

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. M1 Example Charles has $3,000 in a savings account. Juanita has $8,000 in a two-year certificate of deposit (CD). Gilberto has $25.000 in a money market account M2

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. M1 Example Charles has $3,000 in a savings account. Juanita has $8,000 in a two-year certificate of deposit (CD). Gilberto has $25.000 in a money market account M2

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 |
|-----------------------------------------------------|----|----|
| Charles has $3,000 in a savings account. | ☑ | ☑ |
| Juanita has $8,000 in a two-year certificate of deposit (CD). | | ☑ |
| Gilberto has $25,000 in a money market account. | | ☑ |

This table helps illustrate the classification of different types of financial accounts in terms of the money supply components M1 and M2:

- **M1** includes the most liquid forms of money, such as cash and checking accounts.
- **M2** includes all of M1 plus savings accounts, time deposits like certificates of deposit (CDs), and money market accounts.

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