Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 11

Which of the following statements are true regarding the differences between M1 and M2? Check all that apply.
a. M1 includes cash and reserves, whereas M2 does not.
b. M2 represents a broader measure of the money supply compared to M1.
c. Numerically, M1 is larger than M2.
d. All items in M1 are more liquid than all items in M2.
e. M2 includes savings deposits, whereas M1 does not.
f. During the financial crisis, M1 was a more stable measure of the money supply than M2.