Does interbank deposits include in the M2 of the money supply why or why not?

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1285654

2026-07-20 20:55

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Interbank deposits are not included in the M2 measure of the money supply because M2 primarily focuses on money that is readily available for spending by consumers and businesses. M2 includes cash, checking deposits, and savings accounts, but interbank deposits are funds that banks hold with each other and are not accessible for direct spending. Thus, they do not reflect the money available to the general public.

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