M2

What Does M2 Mean?
A category within the money supply that includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds.

Investopedia explains M2
M2 is a broader classification of money than M1. Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions.

Filed Under: Banking, Economics

Related Terms

Expansionary Policy
M0
M1
M3
Monetary Aggregates
Monetary Policy
Money Supply
Narrow Money
More Related Terms

Related Links

What Is Fiscal Policy? - Learn how governments adjust taxes and government spending to moderate the economy.
What Is Money? - It's a part of everyone's life, and we all want it, but do you know how it gains value and how it is created?
Compare Local Interest Rates - Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
What Are Central Banks? - They print money, they control inflation, and much, much more. All you need to know about central banks is here.
Macroeconomic Analysis - From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
Formulating Monetary Policy - Learn about the tools the Fed uses to influence interest rates and general economic conditions.

Rate this Term: Your Rating: Overall Rating: Vote Now!