Why does the Bank of Canada use six definitions of the money supply rather than one? Part 2 The Bank of Canada uses six definitions of the money supply, M1+, M1++, M2, M2+, M2++, and M3, because Part 3 A. M2 is also known as cash and cash equivalent, whereas M1 represents the standard of deferred payment function. B. M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of value function. C. M3 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the money supply. D. M1 is a narrow definition focusing more on liquidity, whereas M3 is a broader definition of the money supply