Short term deposits under M2 refers to deposits invested for a period of: A. 6 days B. Less than 30 days C. 30 days D. None of the aboveReset Selection

Understanding M2 and Short-Term Deposits

In monetary economics, M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near money. Short-term deposits typically refer to funds that are accessible or can be withdrawn within a relatively short duration.

Analyzing the Options

1. A. 6 days: This is indeed a very short period but generally does not categorize under standard financial terms for short-term deposits.
2. B. Less than 30 days: This aligns with the common definition of short-term deposits, as many financial products offer terms that fall into this category.
3. C. 30 days: This indicates a longer duration. While it can be seen as short-term in some contexts, it doesn't fit "less than" 30 days.
4. D. None of the above: This would only be accurate if no options fit.

Conclusion

Based on the definitions and analysis above, it is clear that for short-term deposits under M2, the most accurate answer is often considered to be:

Final Answer: B. Less than 30 days