It does not include IRA or Keogh retirement accounts. Next, we can use this concept of liquidity to figure out what M2 is. M2 was $15.327 trillion in November 2019 (seasonally adjusted). M2 includes a broader set of financial assets held principally by households. M2 includes M1 plus some less liquid (but still fairly liquid) assets, including savings and time deposits, certificates of deposit, and money market funds. M1. M2 includes M1 along with savings accounts, money market accounts, money market funds, and time deposits under $100,000. M2 consists of M1 plus: (1) savings deposits (which include money market deposit accounts, or MMDAs); (2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs). M2 money supply is less liquid in nature and includes M1 plus savings and time deposits, certificates of deposits, and money market funds. M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits. MZM consists of M1 plus savings deposits and all money market accounts, including institutional money market funds. The M3 money supply consists of M2 plus large commercial deposits. If the Federal Reserve issues or prints too much money, the result is inflation and a rise in prices. M1 is the most narrow definition of the money supply. $9165.8 billion $2,308 billion $3,035.8 billion FEEDBACK: The M2 money supply consists of the M1 money supply and other items often called "near monies." M3 is a collection of the money supply that includes M2 money as well as large time deposits, institutional money market funds, short-term repurchase agreements, and larger liquid funds. These items include savings deposits, money market mutual funds, and CDs. Money Supply M2 in the United States averaged 4380.52 USD Billion from 1959 until 2020, reaching an all time high of 18811.60 USD Billion in October of 2020 and a record low of 286.60 USD Billion in January of 1959. M1. Money Supply M2 in the United States increased to 18811.60 USD Billion in October from 18658.10 USD Billion in September of 2020. M1 consists of the currency that is currently out there in people’s wallets plus how many checkable deposits we all have! M2 consists of time deposits, which most of us know as CDs or certificates of deposit. M2 is a broader definition of money, consisting of M1 plus things that are not too much of … A CD is an investment that locks up your money for a while and pays a higher interest rate. M1 money supply includes coins and currency in circulation—the coins and bills that circulate in an economy that are not held by the U.S. Treasury, at the Federal Reserve Bank, or in bank vaults. Let’s examine these two money definitions in more detail. 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