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@ MFO Members: M2 A measure of money supply that includes cash and checking deposits (M1) as well as near money. “Near money" in M2 includes savings deposits, money market mutual funds and other time deposits, which are less liquid and not as suitable as exchange mediums but can be quickly converted into cash or checking deposits. Regards, Ted
Also note that the chart does not represent the total amount of the M2 money supply, but rather how fast that supply circulates from one holder to another. It is therefore an indirect indicator of general economic activity.
from Wickipedia: It is the number of times one dollar is spent to buy goods and services per unit of time. Alternatively and less frequently, it can refer to the transactions velocity of money, which is the frequency with which the average unit of currency is used in any kind of transaction in which it changes possession—not only the purchase of newly produced goods, but also the purchase of financial assets and other items.
@Ted- Thanks, but I'm not getting my hopes up. I've lost track of the times that you've cut me out already! Besides, you'll probably outlast me anyway.
Comments
A measure of money supply that includes cash and checking deposits (M1) as well as near money. “Near money" in M2 includes savings deposits, money market mutual funds and other time deposits, which are less liquid and not as suitable as exchange mediums but can be quickly converted into cash or checking deposits.
Regards,
Ted
from Wickipedia:
It is the number of times one dollar is spent to buy goods and services per unit of time. Alternatively and less frequently, it can refer to the transactions velocity of money, which is the frequency with which the average unit of currency is used in any kind of transaction in which it changes possession—not only the purchase of newly produced goods, but also the purchase of financial assets and other items.
Regards,
Ted