Question

Money market mutual funds are an example of which of the following types of money? M2...

Money market mutual funds are an example of which of the following types of money?

  • M2

  • M3

  • M1

  • M0

Homework Answers

Answer #1

Money market mutual funds are an example of which of the following types of money?

Answer: Money market mutual funds are an example of M2 because

  • M2 = M1 + small savings accounts + money market funds and small time deposits. Here. M1 includes coins and currency in circulation, checking accounts and traveler's checks, which is added to small savings accounts, money market funds including money market mutual funds and small time deposits. Therefore, money market mutual funds are an example of M2 money supply.
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