M2 A category within the money supply that includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds. Investopedia Says: M2 is a broader classification of money than M1. Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. Related Terms: M0 M1 M3 Monetary Policy Money Supply Narrow Money |