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What does M2 consist of in the world of digital currencies?

avatarThe AhmedDec 16, 2021 · 3 years ago3 answers

In the world of digital currencies, what are the components that make up M2?

What does M2 consist of in the world of digital currencies?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    M2 in the world of digital currencies refers to the broad money supply that includes physical currency, demand deposits, and various types of savings deposits. It represents the total amount of money available for spending and investment in the digital currency ecosystem. This includes both the money created by central banks and the money created by commercial banks through lending. M2 is an important indicator of the overall liquidity and stability of the digital currency market.
  • avatarDec 16, 2021 · 3 years ago
    M2 in the world of digital currencies consists of physical cash, checking accounts, savings accounts, money market accounts, and other time deposits. It represents the money supply that is readily available for use in the digital currency economy. M2 is a measure of the total amount of money circulating within the digital currency system and is used to assess the overall health and stability of the economy.
  • avatarDec 16, 2021 · 3 years ago
    In the world of digital currencies, M2 is composed of physical currency, demand deposits, and various types of savings deposits. It is an important measure of the money supply and reflects the amount of money available for spending and investment in the digital currency market. M2 provides insights into the liquidity and stability of the digital currency ecosystem, and is closely monitored by market participants and regulators.