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Fractional Reserve Banking
Broad Money Supply (M2)
Broad Money Supply (M2)
Nick Name
M2
Abbreviation
M2
Parent term
Fractional Reserve Banking
The Broad Money Supply (M2) is equal to the Monetary Base (MB) times the Money Multiplier (m)
More about Broad Money Supply (M2)
Discusses The Following
Experts
Notes
M2 = MB * m
A slowdown in M2
Money
growth
is a strong indicator of an upcoming
recession
The Federal
Reserve
can control the
Monetary Base
(MB)
The Federal
Reserve
can not control the
Money Multiplier
(m)