What types of money are included in the M2 category? Check all that apply.

Where do banks get money to lend to borrowers?

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01-04-2019
Business

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What types of money are included in the M2 category? Check all that apply.

Where do banks get money to lend to borrowers?

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MsTeel MsTeel · Answer 1 · 2019-04-01T21:40:41+02:00

MsTeel MsTeel

01-04-2019

M2 is a calculation of money supply that includes all elements of M1 (cash, checking deposits, etc) plus "near money" which includes mutual funds, savings deposits, money market securities, etc.

Banks get money to lend through other people's deposits (minus the required reserve ration) and from interest income from other loans they make.

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What types of money are included in the M2 category? Check all that apply. Where do banks get money to lend to borrowers?

Respuesta :

Otras preguntas

What types of money are included in the M2 category? Check all that apply.

Where do banks get money to lend to borrowers?