M2 - Definition

One measure of the Money Supply that includes M1, plus savings and small time deposits, Overnight repos at commercial banks, and non-institutional money market accounts. A key Economic Indicator used to forecast Inflation. Like M1 money supply reduction, raising Interest rates may reduce consumer spending and hinder business Activity. When interest rates increase many consumers and business owners often will not purchase the goods they want because it costs too much to borrow money.

Terms near "M2"

M3

Maastricht Treaty

Macaroni defense

Macau Pataca

Macaulay Duration

MACD

MACD Histogram

Macedonia Denar

Macro risk

Macro-based