M2

M2 is a measure of the money supply that includes the components of M1 (currency in circulation and demand deposits) along with additional types of deposits that are less liquid but still readily available for spending. These additional components typically include savings accounts, money market deposit accounts, and small time deposits. M2 is considered a broader measure of the money supply compared to M1, as it encompasses a wider range of assets that can be used for transactions and stored value. It is an important indicator for assessing the availability of liquid funds in an economy and monitoring monetary policy.