Which of these is included in M2 measurement?

M2 is a measure of the money supply that includes several components, one of which is M1. M1 consists of the most liquid forms of money, including physical cash, demand deposits, and other liquid assets. M2 builds on this by adding components that are slightly less liquid, such as savings accounts, money market accounts, and small time deposits.

By including M1 in its calculation, M2 provides a broader perspective on the money available in the economy for spending and investment. This is significant for economic analysis, as it helps gauge how much money consumers and businesses can spend. Understanding the relationships between M1 and M2 is essential for evaluating monetary policy and the overall economic environment.

The other options do not pertain to the M2 measurement in the same way. M3 is a broader measure that includes M2 plus large time deposits and other larger liquid assets, which is not considered part of M2. Term repos and jumbo CDs are also not included in M2 because they are typically larger-scale financial products. Fixed income securities represent investments rather than cash or cash-equivalent resources, making them outside the scope of M2. Thus, including M1 in M2 is crucial for understanding money supply dynamics in the economy.