M2

(noun)

The amount of cash in circulation plus bank accounts, savings accounts and small deposits.

Examples of M2 in the following topics:

  • Measuring the Money Supply: M2

    • M2 is one of the aggregates by which the Federal Reserve measures the money supply .
    • M2 consists of all the liquid components of M1 plus near-monies.
    • This would cause M1 to decrease by $1,000, but M2 to stay the same.
    • This is because M2 includes the money market account in addition to all the money counted in M1.
    • The M2 aggregate includes M1 plus near-monies.

  • Elastic Collisions in One Dimension

    • $\frac{1}{2}m_1\cdot v_{1i}^2+\frac{1}{2}m_2\cdot v_{2i}^2=\frac{1}{2}m_1\cdot v_{1f}^2+\frac{1}{2}m_2\cdot v_{2f}^2$ (due to conservation of kinetic energy)

  • Other Measurements of the Money Supply

    • In addition to the commonly used M1 and M2 aggregates, several other measures of the money supply are used as well.
    • In addition to the commonly used M1 and M2 aggregates, there are several other measurements of the money supply that are used as well .
    • M2: M1 + most savings accounts, money market accounts, retail money market mutual funds, and small denomination time deposits (certificates of deposit of under $100,000).
    • M3: M2 + all other certificates of deposit (large time deposits, institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements.
    • It is M2 – time deposits + money market funds.

  • Difference between Means

    • where M1 - M2 is the difference between sample means, tCL is the t for the desired level of confidence, and $(S_{M_1-M_2})$ is the estimated standard error of the difference between sample means.
    • where M1 is the mean for group 1 and M2 is the mean for group 2.

  • The Money Supply Multipliers

    • We derive the money supply multiplier for M2 similarly.
    • The M2 definition includes time deposits, denoted by T.
    • We define the M2 definition as M2 = C + D + T.
    • Monetary base (B) would cancel, leaving M2 = M2.
    • The M2 money multiplier exceeds the M1 always.

  • Measuring the Money Supply

    • (MB = $900, M0 = $900, M1 = $900, M2 = $900)
    • M2: Represents money and "close substitutes" for money.
    • M2 is a broader classification of money than M1.
    • M2 is a key economic indicator used to forecast inflation.
    • M3: M2 plus large and long-term deposits.

  • Sampling Distribution of Difference Between Means

    • The sampling distribution of the difference between means can be thought of as the distribution that would result if we repeated the following three steps over and over again: (1) sample n1 scores from Population 1 and n2 scores from Population 2, (2) compute the means of the two samples (M1 and M2), and (3) compute the difference between means, M1 - M2.
    • The subscripts M1 - M2 indicate that it is the standard deviation of the sampling distribution of M1 - M2.

  • Matrices for two degrees of freedom

    • $m_2 {\ddot{x}_2} + k_3 x_2 + k_2 (x_2 - x_1) = 0. $
    • $\displaystyle{ \left[ \begin{array}{cc} m_1 & 0 \\ 0 & m_2 \end{array} \right] \left[ \begin{array}{c} \ddot{x}_1 \\ \ddot{x}_2 \end{array} \right] + \left[ \begin{array}{cc} k_1 + k_2 & -k_2 \\ -k_2 & k_2+k_3 \\ \end{array} \right] \left[ \begin{array}{c} x_1 \\ x_2 \end{array} \right] = \left[ \begin{array}{c} 0 \\ 0 \end{array} \right] . }$
    • $\displaystyle{ M = \left[ \begin{array}{cc} m_1 & 0 \\ 0 & m_2 \end{array} \right] }$
    • $\displaystyle{ M^{-1} = \left[ \begin{array}{cc} {m_1}^{-1} & 0 \\ 0 & {m_2}^{-1} \end{array} \right]. }$
    • $\displaystyle{M^{-1} K = \left[ \begin{array}{cc} \frac{k_1 + k_2}{m_1} & \frac{-k_2}{m_1} \\ \frac{-k_2}{m_2} & \frac{k_2+k_3}{m_2} \end{array} \right]. }$

  • Money Supply Definitions

    • The Federal Reserve System defines money supply as M1, M2, M3, and L.
    • Economists define the M2 as a broader definition than M1 because they use the liquidity approach to define the money supply.
    • Economists add the following together for M2:
    • Economists define M3 broader than M2 and include the following items summed together:
    • Accordingly, the Fed does not formulate M1 targets and concentrates on M2 instead.

  • Productivity within Trophic Levels

    • For example, in the English Channel ecosystem, the primary producers account for a biomass of 4 g/m2 (grams per meter squared), while the primary consumers exhibit a biomass of 21 g/m2.
    • In this ecosystem, the total energy accumulated by the primary producers was shown to be 20,810 kcal/m2/yr.
    • In the Silver Spring example, 13,187 of the 20,810 kcal/m2/yr were used for respiration or were lost as heat, leaving 7,632 kcal/m2/yr of energy for use by the primary consumers.