5 thoughts on “What does M2 mean in finance?”

  1. M2 is a broad currency, which is an economics concept. M0, M1, M2, and M3 are all important indicators used to reflect currency supply. M1 reflects the real purchasing power in the economy; M2 also reflects reality and potential purchasing power. If the M1 growth rate is fast, the consumption and terminal market is active; if the M2 growth rate is fast, the investment and intermediate market are active.
    The central banks and commercial banks can determine monetary policy accordingly. M1 is too high, M2 is too low, indicating that demand is strong, insufficient investment, and inflation risks; M2 is too high and M1 is too low, indicating that the investment is overheating, the demand is not strong, and the risk of asset bubbles.
    Currency (m0) = cash in circulation, that is, cash circulating outside the banking system. Narrow currency (m1) = (m0) corporate current deposit;
    D broad currency (M2) = m1 quasi -currency (regular deposit residential savings deposit other deposits securities company customer margin housing provident fund center deposit non -deposit deposit The deposit of deposit financial institutions in the deposit of financial institutions)
    Extended information:
    The currency level: my country ’s division of currency levels is:

    1, m0 = cash narrow currency in circulation
    2, (m1) = m0 bank current deposit broad currency
    3, (m2) = m1 regular deposit savings deposit securities company customer security deposit
    Large -amount transfer regular deposit orders, including M2, M2 reduced M1 is a quasi -currency, and M3 is set according to the continuous innovation of financial instruments.
    Reference materials: Baidu Encyclopedia-M2

  2. Broad Money is an economics concept. M0, M1, M2, and M3 are all important indicators used to reflect currency supply. M1 reflects the real purchasing power in the economy; M2 also reflects reality and potential purchasing power. If the M1 growth rate is fast, the consumption and terminal market is active; if the M2 growth rate is fast, the investment and intermediate market are active. Central banks and commercial banks can determine monetary policy accordingly. M2 is too high and M1 is too low, indicating that the investment is overheating, the demand is not strong, and there is a risk of crisis; the M1 is too high M2 is too low, indicating that the demand is strong, the investment is insufficient, and there is a risk of price increases.

    The currency (M0) = cash in circulation, that is, cash circulating outside the banking system.
    The narrow currency (m1) = (m0) cash check deposit (and transfer credit card deposit);
    broad currency (M2) = m1 savings deposits (including current and regular savings deposits);
    The also has M3 = M2 other short -term current assets (such as Treasury vouchers, bank acceptance bills, commercial bills, etc.).
    The currency mentioned in economics usually refers to M2, and M2 does not include quasi -currency.
    The division of the currency level in my country is:
    m0 = cash in circulation;
    (Regular deposits residential savings deposits other deposits).
    It, there are M3 = M2 financial bonds commercial bills large -amount transfer regular deposit orders.
    M2 reduction M1 is a quasi -currency, and M3 is set according to the continuous innovation of financial instruments.
    D broad currency (M2) is a financial science concept, corresponding to the narrow currency, a form or caliber of currency supply. It is represented by M2, and its calculation method is trading currency and regular deposits and savings deposits.

  3. M2 —— broad currency
    M1, M2, M3 are all important indicators used to reflect the amount of currency supply.

    The general division of international division is:

    The narrow currency (M1) = cash check deposit (and transfer credit card deposit);

    Broadly currency (M2) = m1 savings deposits (including daily life and regular savings deposits);

    It also M3 = M2 other short -term mobile assets (if Treasury vouchers, bank acceptance bills, commercial bills, etc.).

    The division of the currency level in my country is:

    m0 = cash in circulation;
    n Group forces deposits rural deposits personal credit card deposits;

    D broad currency (M2) = m1 urban and rural residents savings deposits corporate deposits with regular deposits trust deposits other deposits Essence

    It also m3 = m2 financial bonds commercial bills large -amount transfer regular deposit orders.

    Among them, M2 minus M1 is a quasi -currency, and M3 is set according to the continuous innovation of financial instruments.

    M1 reflects the real purchasing power in the economy; M2 not only reflects the real purchasing power, but also reflects potential purchasing power. If the M1 growth rate is fast, the consumption and terminal market is active; if the M2 growth rate is fast, the investment and intermediate market are active. Central banks and commercial banks can determine monetary policy accordingly. M2 is too high and M1 is too low, indicating that the investment is overheating, the demand is not strong, and there is a risk of crisis; the M1 is too high M2 is too low, indicating that the demand is strong, the investment is insufficient, and there is a risk of price increases.

  4. M2 refers to a broad currency supply, cash that is circulating outside the banking system plus corporate deposits, residential savings deposits, and other deposits. Pressure in inflation. In recent years, many countries have used M2 as the target of currency supply.
    The answer is provided by Kangbo Finance. Kangbo Finance focuses on the interpretation of financial hot events, science of financial knowledge science, follows professionalism, pursues interesting, and is a financial content that the people can understand. Essence I hope this answer is helpful to you.

  5. M2 (important indicator of currency supply)
    Broad Money is an economics concept. M0, M1, M2, and M3 are all important indicators used to reflect currency supply. M1 reflects the real purchasing power in the economy; M2 also reflects reality and potential purchasing power. If the M1 growth rate is fast, the consumption and terminal market is active; if the M2 growth rate is fast, the investment and intermediate market are active. Central banks and commercial banks can determine monetary policy accordingly. M2 is too high and M1 is too low, indicating that the investment is overheating, the demand is not strong, and there is a risk of crisis; the M1 is too high M2 is too low, indicating that the demand is strong, the investment is insufficient, and there is a risk of price increases.

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