The M2 Definition of the Money Supply Is Based on the Concept

Multiple Choice

The M2 definition of the money supply is based on the concept that

A) M1 is a small number and should be increased in size.
B) many types of deposits can be used as both payments and stores of value.
C) checking deposits are used for payments, and therefore, not part of M1.
D) cash is not used for the majority of payments.