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"

Maastricht Treaty
Macaroni defense
Macau Pataca
Macaulay Duration
MACD Histogram
Macedonia Denar
Macro risk
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M2 - Related articles & news

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There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

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