M2
Broad money metric
M2 is a measure of the money supply that includes cash, checking deposits, and near-money assets like savings accounts and money market funds—assets that can be quickly converted to cash.
Economists track M2 as an indicator of inflation and economic health.
The narrower M1 counts only the most liquid forms of money; M2 adds assets one step removed from immediate spending.
monetary
Total currency in circulation
- liquidityConvertibility to cash
- savings depositsMoney held in accounts
- currencyMedium of exchange
- checking accountsAccessible bank funds
Federal Reserve · monetary policy · central bank · deposits · financial assets · bank reserves · economic indicator
money supply
Total currency in circulation
- liquidityConvertibility to cash
- savings depositsMoney held in accounts
- currencyMedium of exchange
checking accounts · Federal Reserve · monetary policy · central bank · deposits · financial assets · bank reserves · economic indicator