Item 6Item 6 Refer to the given list of assets. 1. Large-denominated ($100,000 and over) time deposits 2. Noncheckable savings deposits 3. Currency (coins and paper money) in circulation 4. Small-denominated (under $100,000) time deposits 5. Stock certificates 6. Checkable deposits 7. Money market deposit accounts 8. Money market mutual fund balances held by individuals 9. Money market mutual fund balances held by businesses 10. Currency held in bank vaults The assets that are not included in either M1 or M2 are

Answer: Items 1,5,9, and 10 are neither in M1 nor M2

Explanation:

Money supply quite simply refers to the money and liquid instruments of exchange in an economy.

Classified into M1, M2 and M3, money supply is grouped by the type and size of the amount in question.

M1 is called Narrow money because it includes coins and notes and other money instruments that can easily be converted into cash and are in circulation.

M2 includes M1 as well as short-term deposits in banks and certain types of money market funds especially individual held. Generally its for amount of less than $100,000 in Banks.

M3 includes M2 as well as large and long term deposits.

Out of the above options, Items 1,5,9, and 10 are not in M1 or M2.

Item 1 refers to very large time deposits which are too big to fit in either M1 or M2.

Item 5 being stock certificates are in neither M2 so can't be in M1 either.

Item 9 being money market mutual fund balances held by businesses tend to be very large and so aren't in M2.

And Item 10 is not in M2 and by extension M1 either because this is money that is not in Circulation.

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