M1 And M2 Relate To The Definition Of Money

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Money is a term that shows every description of coin or bank-notes recognized by a consent as a representative of value effecting exchanges of property and payment debts. M1 consists of currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions. M1 is a measure of money supply that includes all physical money such as coins and currency. M1 doesn’t contain “near money” like M2 does. On the other hand, M2 is a measure of money supply that includes coins and checking deposits just like M1. Near Money in M2 incudes savings deposits, money market and other time deposits. The definitions in M1 and M2 relate to the definition of money because they both have things they do that money does and money is a really
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