Term of the Day - broad money
For Wednesday, January 21, 2009
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Term of the Day - broad money
One measure of the money supply that includes M1, plus savings and small time deposits, overnight repos at commercial banks, and non-institutional money market accounts. This is a key economic indicator used to forecast inflation, since it is not as narrow as M1 and still relatively easy to track. All the components of M2 are very liquid, and the non-cash components can be converted into cash very easily.
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Quote of the Day
It's important to me that money not be important to me. - Les Brown
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