Definition - What does M2 mean?
M2 is a measure of money supply, which includes M1 plus all time deposits, savings accounts and non-institutional money market accounts.
Testopedia explains M2
Includes all the measures in M1 ( cash and checking accounts) plus:
- Money market instruments
- Time deposits of less than $100,000
- Negotiable CD exceeding $100,000
- Overnight repurchase agreements