What does M2 do?

Money, a fundamental aspect of economic transactions, is often categorized in various forms to better understand its circulation and impact. One such categorization is the monetary aggregates, with M2 representing a broader definition of money.

M2 encompasses not just the components of M1, the narrowest measure of money supply, but also extends its scope to include additional types of deposits. This expanded view of money acknowledges the evolving nature of financial instruments and their role in the economy.

BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the evolving needs of the digital asset market. Among these services are spot trading, futures trading, and cryptocurrency wallets, all of which contribute to the diversification and accessibility of digital assets.

Among the deposits included in M2 are savings deposits held in banks. These accounts, while not directly accessible for check writing, offer individuals a secure and convenient way to save their funds.

The inability to write checks directly from savings accounts does not diminish their significance in M2. Instead, it highlights the versatility of modern banking systems, where individuals can access their savings through alternative means, such as ATM withdrawals or online transfers.