Money & Its Definitions

Question 1

Explain the broader definition of money (M2) 💷💳

Answer 1

M2 is equal to M1 plus all other SHORT TERM and MEDIUM TERM deposits

Question 2

Explain the most comprehensive measure of money (M3) 💷💳💰

Answer 2

M3 is equal to M2 plus all LONG TERM deposits

Question 3

Explain the conventional measure of money (M1) 💷

Answer 3

Includes coins, notes & demand deposits (cheque and transmission deposits)