A second and broader definition of money includes which of the following?

Multiple choice question.

M1 plus several near-monies

M1 minus several near-monies

M2 plus several near-monies

M2 minus several near-monies

1 answer

The correct answer is:

M1 plus several near-monies

In economics, M2 is a broader definition of the money supply that includes M1 (which consists of cash and checkable deposits) plus near-monies, such as savings accounts, time deposits, and other liquid assets. Hence, the inclusion of near-monies in addition to M1 falls under this broader definition.