The Federal Reserve uses two definitions of the money supply, M1 and M2, because A. M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of value function. B. M2 is also known as cash and cash equivalent, whereas M1 represents the standard of deferred payment function. C. M1 is a narrow definition focusing more on liquidity, whereas M2 is a broader definition of the money supply. D. M2 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the money supply.