M2

M2 is a narrow measure of money supply. The UK definition is equivalent to the retail component of M4. This is:

Banknotes and coins in circulation plus retail deposits with banks and building societies.

Retail deposits are deposits made at a banks' and building societies' advertised rates. It excludes very large deposits for which banks are willing to negotiate interest rates.

Notes and coins in circulation excludes those held by non-residents, financial institutions and the public sector.

Definitions used in other countries are very similar. It is usually broadly equivalent to M1 plus savings accounts.