Which of the following is not included in the money measure M2?

M2 is a broad measure of the money supply that includes a variety of financial assets that are easily convertible to cash or used for spending. Specifically, M2 encompasses:

1. Cash in circulation: This is the physical currency in the hands of the public, which is a fundamental component of the money supply.
2. Checking account balances: These are considered part of M2 because they can be readily accessed and used for transactions through checks or electronic transfers.
3. Certificates of deposits (CDs): These are time deposits that can also be included in M2, as they are relatively liquid assets that can be converted to cash after a certain period.

In contrast, credit card balances do not represent money directly. Instead, they indicate borrowing and are a method of deferred payment, meaning that they do not equate to actual money in terms of liquidity. When using a credit card, the transaction does not draw down a monetary balance directly; rather, it creates a liability that must be repaid. Thus, credit card balances are not included in any measure of money supply, including M2. Therefore, identifying credit card balances as not part of M2 is accurate.