单选题 Which of the following statements is most accurate with respect to the measures of the money supply?

A. When a firm writes a check to an individual, the M1 measure is increased.
B. When an individual pays for a transaction at a business with a credit card, the M2 measure is increased.
C. M2 includes M1 plus time deposits, savings deposits, and money market mutual fund balances.

【正确答案】 C

【答案解析】The statement that M2 includes M1 plus time deposits, savings deposits, and money market mutual fund balances is correct. Writing a check does not increase the money supply, it merely transfers funds from one party to another. Likewise, using a credit card does not increase the money supply. Checking balances owned by individuals and firms are included in M1, but those of government are not.