Which of the following is included in M2, but not in M1?

M2 is a broader measure of the money supply compared to M1, which focuses more directly on the most liquid forms of money. M1 includes items such as currency in circulation, checking accounts, and traveler's checks, which can be easily accessed for transactions.

Savings deposits are classified as part of M2 because they are generally less liquid than checking accounts but can still be converted to cash quickly, typically with minimal penalties or delays. They serve as a place for individuals to store funds that may not be needed for immediate spending but can still be accessed fairly easily when necessary.

Overall, M2 encompasses all of M1 plus additional forms of money that are somewhat less liquid, like savings accounts, money market securities, and mutual funds. This distinction is essential in understanding the different components of money supply measures in the economy.