Question 1: What do narrow money and broad money mean? Narrow money: It is a macroeconomic concept, represented by M1 in economics. Its calculation method is the total amount of money in circulation in society plus all demand deposits of commercial banks
Broad money: Guangding money is a Economic concept, corresponding to narrow currency. In economics, it is represented by M2, and its calculation method is the total amount of money in circulation in society plus demand deposits, time deposits and savings deposits.
Question 2: The meaning of broad money Broad money (Broad money: the amount of money in a country's economy, measured by counting money kept by banks and people) is an economic concept , corresponding to narrow currency, a form or caliber of money supply, represented by M2, and its calculation method is transaction currency (M1, that is, the total amount of currency in circulation in society plus demand deposits), as well as time deposits and savings deposits. However, due to historical reasons, the statistical caliber and presentation methods will be different in different countries. For example, in the economic statistics of the United States, broad money is often represented by M3; while in the United Kingdom, it is represented by M4.
Question 3: What does broad money m2 mean? Broad money is an economic concept, corresponding to narrow money, a form or caliber of money supply, represented by M2, and its calculation method is transaction currency and Time deposits and savings deposits.
At this stage, our country also divides the money supply into three levels, whose meanings are:
M0: Cash in circulation, that is, cash circulating outside the banking system;
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M1: Money supply in a narrow sense, that is, M0 + demand deposits of enterprises and institutions;
M2: Broad money supply, that is, M1 + time deposits of enterprises and institutions + residents’ savings deposits.
Among these three levels, M0 is closely related to changes in consumption and is the most active currency;
M1 reflects changes in the tightness of residents and corporate funds and is a leading indicator of economic cycle fluctuations. , the liquidity is second only to M0;
The liquidity of M2 is weak, but it reflects changes in total social demand and future inflationary pressures. The money supply commonly referred to mainly refers to M2.
Question 4: What are the meanings of broad money and narrow money? Narrow money: It is a macroeconomic concept, represented by M1 in economics. Its calculation method is the total amount of money in circulation in society plus all demand deposits of commercial banks
Broad money: Broad money is an economic The concept of science corresponds to narrow currency. In economics, it is represented by M2, and its calculation method is the total amount of money in circulation in society plus demand deposits, time deposits and savings deposits.
Cash in circulation M0;
Narrow money M1 = M0 + demand deposits of commercial banks;
Broad money M2 = M1 + time deposits of commercial banks;
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Broad money M3 = M2 + deposits of other financial institutions.
Circulation currency (currency for short) is a tool or a group of tools used for material exchange, sometimes just called "currency". It is rooted in commodities and is a special commodity. It is the concrete representation and unit of measurement of money. A currency area refers to a country or region that circulates and uses a single currency. When exchanging currencies between different currency zones, the concept of exchange rate needs to be introduced.
Question 5: What does M2 (broad money) mean? The "Interim Measures for the Statistics and Publication of Money Supply by the People's Bank of China" stipulates that based on my country's actual situation, my country's money supply is planned to be divided into M0, M1, M2, and M3. M1 is narrow money, M2 is broad money, and M2-M1 is quasi-money. M0: Cash in circulation (cash issuance outside the institutional scope of money supply statistics).
Among them
(1) Cash in circulation (M0) refers to the sum of cash on hand in various units outside the banking system and cash held by residents; generally, this concept does not exist abroad
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(2) Narrow money supply (M1) refers to M0 plus the demand deposits of enterprises, agencies, groups, troops, schools and other units in banks;
(3) Broad money Supply (M2) refers to M1 plus the time deposits of enterprises, agencies, groups, military units, schools and other units in banks, various savings deposits of urban and rural residents in banks, and securities customer deposits. The difference between M2 and M1, that is, the sum of unit time deposits and personal savings deposits, is often called quasi-currency.
(4) The broadest money supply (M3), M2 + securities and other assets with high liquidity.
Question 6: What do narrow money and broad money mean? Cash (M0) Cash has the highest monetary level because it is cash itself and does not need to be converted into cash.
It should be noted that the cash here does not include cash on hand in banks, but only refers to cash flowing outside the banking system. To be more specific, it refers to the cash in the hands of individual residents and the spare cash in enterprises and institutions. This part of the currency can be used as a means of circulation and payment anytime and anywhere, so it has the strongest purchasing power. Narrow money (M1) The monetary level of narrow money is inferior to cash, but higher than broad money. The narrow currency here refers to the above-mentioned cash (M0) plus the demand deposits of commercial banks. Although demand deposits in banks are not equivalent to cash in the hands of individual residents and cash reserves in enterprises and institutions, they can be converted into cash by issuing cash checks at any time and at any time. Currency in the narrow sense has a broad and direct impact on social and economic life, so the currency referred to in various statistical data mainly refers to currency in the narrow sense. For governments in various countries, the currency referred to in controlling the money supply mainly refers to narrow currency, which is the main object of governments to regulate the currency market. Broad money (M2) Because some of the broad money is not money in the true sense, it has the lowest liquidity and the lowest monetary level. The broad currency here refers to the two parts of narrow currency plus quasi-currency. The so-called quasi-currency, also called "sub-currency" or "approximate currency", refers to time deposits, savings deposits, foreign exchange deposits in bank deposits, and various short-term credit instruments, such as bank acceptance bills, short-term treasury bills, etc. Although time deposits, savings deposits, foreign exchange deposits, bank acceptance bills, etc. in quasi-currency are not currencies in the true sense, they can be converted into currencies in the true sense, that is, money in a narrow sense, more easily after certain procedures. From this point of view, broad money includes everything that has the potential to become a form of money with actual purchasing power. The above is the classification of currency levels by the International Monetary Fund. According to the revision of the monetary and financial statistics system by the People's Bank of China in accordance with the "Monetary and Financial Statistics Manual" promulgated by the International Monetary Fund, starting from 2002, although the foreign exchange business data of financial institutions in China are still included in the relevant monetary statistical statements, they are still It is necessary to list foreign currency deposits separately, but it is not included in the statistical category of quasi-currency. In this case, the currency levels divided by the People's Bank of China are specifically reflected in: M0 = cash in circulation M1 = M0 + demand deposits M2 = M1 + quasi-currency (term deposits, savings deposits, other deposits) M3 = M2 + other monetary short-term Liquid assets (treasury bills, financial bonds, commercial papers, large negotiable certificates of deposit, etc.) Among them, the concept of M3 first appeared in the "Interim Measures for the Statistics and Publication of Money Supply of the People's Bank of China" promulgated on December 28, 1994. It was set based on the background of continuous innovation of financial instruments in China at that time. Therefore, China's currency levels at that time were divided into several levels: M0, M1, M2, and M3. M3 adds some illiquid assets to M2, such as large transferable time deposit certificates (more than 100,000 US dollars), money market mutual funds (institutions), medium and long-term repurchase agreements and medium- and long-term existence USD from European non-U.S. banks, etc.
Question 7: Explain in popular language what broad money is. Good
Something that can be used as money!
Question 8: What do narrow money and broad money mean? Narrow money: It is a macroeconomic concept, represented by M1 in economics. Its calculation method is the total amount of money in circulation in society plus all demand deposits of commercial banks
Broad money: Guangding money is a Economic concept, corresponding to narrow currency. In economics, it is represented by M2, and its calculation method is the total amount of money in circulation in society plus demand deposits, time deposits and savings deposits.
Question 9: What does broad money m2 mean? Broad money is an economic concept, corresponding to narrow money, a form or caliber of money supply, represented by M2, and its calculation method is transaction currency and Time deposits and savings deposits.
At this stage, our country also divides the money supply into three levels, whose meanings are:
M0: Cash in circulation, that is, cash circulating outside the banking system;
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M1: Money supply in a narrow sense, that is, M0 + demand deposits of enterprises and institutions;
M2: Broad money supply, that is, M1 + time deposits of enterprises and institutions + residents’ savings deposits.
Among these three levels, M0 is closely related to changes in consumption and is the most active currency;
M1 reflects changes in the tightness of residents and corporate funds and is a leading indicator of economic cycle fluctuations. , the liquidity is second only to M0;
The liquidity of M2 is weak, but it reflects changes in total social demand and future inflationary pressures. The money supply commonly referred to mainly refers to M2.
Question 10: What are the meanings of broad money and narrow money? Narrow money: It is a macroeconomic concept, represented by M1 in economics. Its calculation method is the total amount of money in circulation in society plus all demand deposits of commercial banks
Broad money: Broad money is an economic The concept of science corresponds to narrow currency.
In economics, it is represented by M2, and its calculation method is the total amount of money in circulation in society plus demand deposits, time deposits and savings deposits.
Cash in circulation M0;
Narrow money M1 = M0 + demand deposits of commercial banks;
Broad money M2 = M1 + time deposits of commercial banks;
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Broad money M3 = M2 + deposits of other financial institutions.
Circulation currency (currency for short) is a tool or a group of tools used for material exchange, sometimes just called "currency". It is rooted in commodities and is a special commodity. It is the concrete representation and unit of measurement of money. A currency area refers to a country or region that circulates and uses a single currency. When exchanging currencies between different currency zones, the concept of exchange rate needs to be introduced.