Which of the following is included in broad money, but not included in narrow money ?
Correct answer: A. savings accounts
- A. savings accounts
- B. Travelers checks
- C. Currency held outside banks
- D. Automatic-transfer savings accounts
Explanation
Savings accounts are generally included in broad money, such as M2, but not narrow money, such as M1. Currency, travellers' cheques, and automatic-transfer accounts were included in narrower monetary aggregates under the traditional classification.
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