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Refer to the given list of assets. 1. Large-denominated ($100,000 and over) time deposits 2. Noncheckable savings deposits 3. Currency (coins and paper money) in circulation 4. Small-denominated (under $100,000) time deposits 5. Stock certificates 6. Checkable deposits 7. Money market deposit accounts 8. Money market mutual fund balances held by individuals 9. Money market mutual fund balances held by businesses 10. Currency held in bank vaults The assets that are not included in either M1 or M2 are _______.

Respuesta :

Answer:

1) Large-denominated ($100,000 and over) time deposits.

5) Stock certificates.

9) Money market mutual fund balances held by businesses.

10) Currency held in bank vaults.

Explanation:

Economists have broader definition of money based on liquidity. Liquidity refers to how quickly a financial asset can be converted into cash.

M1 money supply includes coins and currency in circulation—the coins and bills that circulate in an economy that are not held by the U.S. Treasury, at the Federal Reserve Bank, or in bank vaults. It also includes checkable deposits.

M2 includes everything in M1 plus savings deposits in banks certificates of deposit (CDs) or time deposits.

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