Are the assets in M1 more or less liquid than the assets included in M2? Briefly explain.
The assets in M1 are more liquid. M1 is the narrowest definition of money and includes currency, traveler's checks, and checking account deposits, all assets that are very liquid. M2 is a broader measure of money and includes M1, time deposits with a value of less than 100,000, savings accounts, money market accounts, and non-institutional money market mutual fund shares