Cryptocurrency Q&A
How do you use M1 and M2?
How do you use M1 and M2?
Davide
Thu Oct 10 2024
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6 answers
1231
I'm trying to understand how to properly utilize M1 and M2 in a specific context or system. Could you explain the steps or methods involved in using these two components effectively?
6 answers
Carolina
Sat Oct 12 2024
The distinction between M1 and M2 money is crucial in understanding the liquidity and velocity of money within an economy. Both measures represent different levels of money supply, with M1 being the narrowest and M2 the broadest.
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CryptoWizardry
Fri Oct 11 2024
M2 money expands upon M1 by including less liquid forms of savings and investments. It encompasses M1 plus savings deposits, money market funds, certificates of deposit, and other time deposits.
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Daniele
Fri Oct 11 2024
M1 money comprises the most liquid forms of currency and deposits that can be easily accessed for transactions. It includes coins and currency in circulation, checkable (demand) deposits held in banks, and traveler's checks.
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BitcoinBaron
Fri Oct 11 2024
Savings deposits are funds held in bank accounts that typically earn interest and may have restrictions on withdrawals or transfers. Money market funds, on the other hand, are investment vehicles that pool investors' money and invest in short-term, high-quality debt securities.
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CryptoWizardry
Fri Oct 11 2024
Checkable deposits, also known as demand deposits, are funds held in bank accounts that can be withdrawn or transferred at any time without notice. They are highly liquid and contribute significantly to M1's total.
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