Photo: Vie Studio

What is type 2 money?

M2 is a measure of the money supply that includes cash, checking deposits, and easily-convertible near money. M2 is a broader measure of the money supply than M1, which just includes cash and checking deposits.

investopedia.com - M2 Definition and Meaning in the Money Supply - Investopedia

What planet controls your love life?

Venus We all know that Venus is the planet of love. It is named the Goddess of love, beauty, and pleasure, so it makes sense that it rules over...

Last updated Jun 26, 2020

What is a profitable side business?

Writing, editing, proofreading, graphic designing, web designing, translating, and illustrating are just a few in-demand creative services, and...

Last updated Oct 18, 2020

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

What Is M2?

M2 is a calculation of the money supply that includes all elements of M1 as well as "near money." M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, and other time deposits (in amounts less than $100,000). These assets are less liquid than M1 and not as suitable as exchange mediums, but they can be quickly converted into cash or checking deposits. Key Takeaways M2 is a measure of the money supply that includes cash, checking deposits, and easily-convertible near money. M2 is a broader measure of the money supply than M1, which just includes cash and checking deposits. M2 is closely watched as an indicator of money supply and future inflation, and as a target of central bank monetary policy.

1:22 M2

Understanding M2

Measuring the money supply of an economy is a challenging proposition. Due to the complexity of the concept of “money,” as well as the size and level of detail of an economy, there are multiple ways of measuring a money supply. These means of measuring a money supply are typically classified as “M”s and fall along a spectrum from narrow to broad monetary aggregates. Typically, the “M”s range from M0 to M3, with M2 typically representing a fairly broad measure. M2 is a broader money classification than M1 because it includes assets that are highly liquid but are not cash. A consumer or business typically doesn't use savings deposits and other non-M1 components of M2 when making purchases or paying bills, but it could convert them to cash in relatively short order. M1 and M2 are closely related, and economists like to include the more broadly defined definition for M2 when discussing the money supply because modern economies often involve transfers between different account types. For example, a business may transfer $10,000 from a money market account to its checking account. This transfer would increase M1, which doesn’t include money market funds, while keeping M2 stable, since M2 contains money market accounts.

The Money Supply

M2 as a measurement of the money supply is a critical factor in the forecasting of issues like inflation. Inflation and interest rates have major ramifications for the general economy, as these heavily influence employment, consumer spending, business investment, currency strength, and trade balances. In the United States, the Federal Reserve publishes money supply data every Thursday at 4:30 p.m., but this only covers M1 and M2. Data on large-time deposits, institutional money market funds, and other large liquid assets are published on a quarterly basis and are included in the M3 money supply measurement.

Changes in Money Supply

In the United States, the Federal Reserve's dual mandate is to balance unemployment and inflation. One of the ways it does this is by manipulating M2 money supply. M2 provides important insight into the direction, extremity, and efficacy of central bank policy. M2 has grown along with the economy, rising from $4.6 trillion in January 2000 to $18.45 trillion in August 2020. The supply never shrank year-over-year (YOY) at any point in that period. The most extreme growth occurred in September 2001, January 2009, and January 2012, when the rate of M2 expansion topped 10%. These accelerated periods coincided with recessions and economic weakness, during which expansionary monetary policy was deployed by the central bank. The economic fallout from the COVID-19 pandemic along with the economic stimulus efforts that followed have also greatly expanded the money supply, with record quarterly increases in Q1 of 2021. In fact, February of 2021 saw a year-over-year increase of 27.12%.

What can make you extremely rich?

If you want to become really really rich, make bold moves. Exploit your skill as a self-employed expert and invest in it. ... Hit $100K, then...

Last updated Sep 18, 2021

What do really rich people do?

Wealthy people take risks to learn new things, develop new skills, and expand their comfort zones. They are likely to start a business and invest...

Last updated Oct 4, 2018

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

How do you pray with intentions?

Prayer is your direct connection to Heavenly Father. You can strengthen that connection by praying with real intent—a desire to know what Heavenly Father wants you to do, willingness to listen for His answers, and commitment to act on promptings you receive.

churchofjesuschrist.org - Pray with Real Intent

Set a goal to pray morning and night. Create a reminder, such as a note or a picture, to help you remember to pray. Read Joseph Smith—History 1:15–18 and look for the things that Joseph Smith did when he prayed (kneeling down, praying out loud, and so forth). Choose one or two of these things and practice doing them in your own prayers. Take a few minutes before you pray to think about things you need or want to pray for. You might even want to write things down to help you remember. Read and study recent general conference talks about prayer and receiving personal revelation through the Holy Ghost. Make a list of things you learn in these talks that help you understand how to pray with real intent. Study examples in the scriptures of individuals who prayed with real intent. Pay special attention to prayers offered by the Savior in the New Testament and the Book of Mormon. Do you notice things that these prayers have in common? Set a goal to include those things in your own prayers. Pay special attention to the thoughts that come to your mind while you pray, and write them down. Follow through with the actions you’re prompted to take.

What is the color of abundance?

Purple is a spiritual colour in Feng Shui and associated with abundance. Sep 8, 2022

Last updated Dec 29, 2018

Who is the Mother of all zodiac signs?

Cancer, the Mother of the Zodiac (June 21 – July 21)

Last updated Jul 13, 2020

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Who is Leo best friend?

Leo best compatibility: Aries, Gemini, Libra, and Sagittarius. Sep 26, 2019

Last updated May 17, 2022

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Why do billionaires wake up at 4am?

During the early waking moments of the morning, you can be fully alert and focused to due the brain chemistry at that time. You won't be...

Last updated Apr 21, 2021