M1 Differs from M2 in That

Multiple Choice

M1 differs from M2 in that:

A) M1 includes currency and balances held in checking accounts, which are not included in M2.
B) M2 includes savings deposits, small-denomination time deposits, and money market mutual funds that are not included in M1.
C) M1 is a broader measure of the money supply than M2.
D) the assets in M2 are more liquid than the assets in M1.