The small-denomination time deposits, savings deposits and
Concept Introduction:
Money supply − Money supply refers to the monetary aggregate that goes beyond monetary base including other assets which could be less liquid in form.
M1 Money supply includes most liquid part of the money supply including physical currencies such as notes, coins, demand drafts, traveler’s checks, checkable deposits.
M2 Money supply includes along with M1, the mutual funds, time deposits and saving deposits. In comparison to M1, M2 Money supply is less liquid.
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