What does M1 and m2 mean in economics?

What is m1 and m2 in economics? M1 and M2 money have several definitions, ranging from narrow to broad. M1 = coins and currency in circulation + checkable (demand) deposit + traveler's checks. M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits. Click to see full answer.

How does m2 differ from M1?

The main difference is that M1 is a more limited and more liquid type of money. M2 includes all of M1. However, it also includes other, less liquid, forms of money. This includes such things as deposits in savings accounts, money market accounts, and money market mutual funds. Beside this, what is m1 and m2 money?

What is the difference between M1, M2 and M3 money supply?

M1, M2 and M3 are measurements of the United States money supply, known as the money aggregates. M1 includes money in circulation plus checkable deposits in banks. M2 includes M1 plus savings deposits (less than $100,000) and money market mutual funds. M3 includes M2 plus large time deposits in banks.