Which of the following is the narrow measure of the money supply ........

Which of the following is the narrow measure of the money supply?

- M1:

- Represents the narrowest measure of the money supply.

- Includes currency in circulation and demand deposits such as checking accounts.

- Easily accessible for transactions.

- Correct Answer

- M2:

- Broader than M1, includes M1 plus savings accounts, small time deposits, and non-institutional money market funds.

- M3:

- Even broader, comprises M2 plus larger time deposits, institutional money market funds, and other larger liquid assets.

- M4:

- Generally not commonly used in all countries, includes M3 and other liquid assets, and broader financial instruments.

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