M2 is _______ M1.

A) about five times as large as
B) about one and a half times as large as
C) a little smaller than
D) about one third the size of
E) about one eighth the size of

M2

Includes all elements of M1 along with near money, such as savings deposits, time deposits under $100,000, and non-institutional money market funds.

M1

This term identifies the core components of the money supply, focusing primarily on currency and liquid assets held by the public.