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Author Question: The main advantage of using M2 instead of M1 as the measure for money is that (Read 12 times)

cdr_15

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Question 1

An equation for M1 is


◦ M2 + Savings Accounts - Currency Held Outside Banks + Other Near Monies.
◦ M2 - Savings Accounts - Money Market Accounts - Other Near Monies.
◦ Money Market Accounts + Automatic-transfer Savings Accounts.
◦ M2 + Near Monies.

Question 2

The main advantage of using M2 instead of M1 as the measure for money is that


◦ M2 can be measured more accurately.
◦ M2 includes only instantly accessible assets.
◦ M2 is sometimes more stable.
◦ M2 varies as the interest rate varies.


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Marked as best answer by cdr_15 on Apr 19, 2019

Athena23

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cdr_15

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)


ghepp

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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