Definition:
M2
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M2 is a measure of the money supply that includes M1 (physical currency and demand accounts) plus most savings accounts, money market accounts, money market mutual funds and small denomination time deposits (CDs less than $100,000).M2 is a slightly less liquid measure of the money supply than just M1. It includes the highly-liquid cash and demand accounts of M1 but also less liquid CDs and money market instruments held by by individuals at the retail level.
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