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M1 money is transaction money, It includes: Coins of all denominations, Paper money including all types of notes, Checking accounts and Traveler's checks.

M2 money is M1 money plus Close substitutes ( savings accounts/deposits).

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15y ago

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What is the difference between M1 and M2?

What is the difference between M1 and M2?


What is the difference between the M1 and M2 money supply?

M1 is what is outside the banking system: Your cash, coins, your checking account. M2 is: All of M1 plus, savings accounts, money in banks, small time deposits...etc .


What represents the correct relationship between the slopes of perpendicular lines?

If the slopes are m1 and m2 then m1*m2 = -1 or m2 = -1/m1.


What are the differences between m0, m1, and m2 processors in terms of performance and features?

The main differences between m0, m1, and m2 processors lie in their performance and features. The m0 processor is typically the least powerful and has fewer features compared to the m1 and m2 processors. The m1 processor offers better performance and more advanced features than the m0, while the m2 processor is the most powerful and feature-rich of the three. Overall, as you move from m0 to m2 processors, you can expect an increase in performance and capabilities.


How can one find m1 and m2 in economics?

In economics, m1 and m2 refer to different measures of money supply. M1 includes cash and checking account deposits, while M2 includes M1 plus savings accounts and other types of deposits. To find m1 and m2, you can look at the data provided by the central bank or financial institutions, which regularly publish reports on money supply.


What are M1 M2 M3 and M4?

M1, M2, M3, and M4 are typically used to refer to different measures of the money supply within an economy. Generally, M1 includes physical money and demand deposits, M2 adds savings deposits and money market funds to M1, M3 includes M2 plus large time deposits and institutional money market funds, while M4 is a broader measure that includes M3 plus all other assets.


What are the Components of money supply?

money supply has three components which are; M0,M1 and M2


Are treasury bills considered in M1 or M2 money supply?

neither


Why is it difficult for the fed to gather and evaluate information about M1 and M2?

The money supply is measured in terms of M1 and M2. New savings and investment opportunities have appeared. Keeping track of the growth of M1 and M2 becomes more difficult as money is shifted from savings accounts into interest-paying checkable accounts.


What happens to the gravitational force when the distance between the 2 objects is trippled?

The force, written as an equation, is:F = G (m1)(m2) / r2, whereF is the Force between the massesG is the gravitational constant (~= 6.674 x 10-11 N m2/kg2)m1 is one of the massesm2 is the other massr is the distance between the masses (center to center)Take the formula, and solve for r (I'll show the steps): Fold = G (m1)(m2) / r2.(r2)(Fold)= G (m1)(m2)(r2)= G (m1)(m2) / (Fold)r= √ [ G (m1)(m2) / (Fold) ]Plug the formula into itself, but remember, r = 3r (it tripled).Fnew= G (m1)(m2) / (3r)2.Fnew= G (m1)(m2) /(3√ [ G (m1)(m2) / (Fold) ])2.Fnew=G (m1)(m2)/(32G (m1)(m2) / (Fold) )


What are m2's and m1?

M2 and M1 are measures of the money supply. M1 includes physical money, such as paper currency and coins, as well as demand deposits and other liquid assets that can be quickly converted into cash. M2 includes all of M1 plus savings deposits, time deposits, and other non-cash assets that can be easily converted into cash.


What is included in M2 but not in M1?

M2 includes M1 components (currency, demand deposits) along with savings accounts, time deposits, and non-institutional money market funds.