M1 And M2 Money Supply

There are two categories of money supply. M1 is basically all the money in circulation. It includes the money goes to pay for things on your electricity bill. It 's also the money that is their own bank accounts. Let's just call this a cash, money that is actively moving in the economy.

Then there is the M2. Is M1 plus the following. It includes money in savings accounts and money market accounts.