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M2 Meaning & Definition
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Definition of M2
M2 is a measure of money supply, which includes M1 plus all time deposits, savings accounts and non-institutional money market accounts.
Applying "M2" to Securities Exams:
Includes all the measures in M1 ( cash and checking accounts) plus:
- Money market instruments
- Time deposits of less than $100,000
- Negotiable CD exceeding $100,000
- Overnight repurchase agreements