Ask a few questions about M2M, Introduction to M2M for M2M

What's the big deal, except for the second zhanghuijerry, who wouldn't copy ?? Everyone says yes, I like three songs from M2M, 1The Day You Went Away2pretty boy3Mirror Mirror is really good.

M1, M2 and M3 are the three levels of the amount of money, which refer to different types of currencies.

M1 is the amount of money in the narrow sense, including cash in circulation (refers to the sum of cash in stock and cash held by residents, where "unit" refers to enterprises, institutions, groups, troops, schools, etc. outside the banking system) and the unit's demand deposit in the bank that can be paid by cheques.

M2 is broad money**, including M1 and other financial assets such as savings deposits, currency cooperatives**, foreign exchange reserves, etc.

M3 is an economic concept of the amount of money, which corresponds to M2 and has no official definition. In some economic literature, M3 is even used to refer to a form or caliber of money supply, expressed in M2.

The amount of money refers to the total stock of money that can be used for various transactions in a certain period of time in a country's economy. The amount of money can be divided into different levels according to the strength of currency liquidity, namely M0, M1, M2, M3, M4, etc. Among them, M0 is the most basic monetary level, and it is also the main way for the central bank to provide support for the base currency.

The meaning of the m1, m2, m3 and other levels in the rank division is:

m0 (currency) = cash in circulation, i.e. cash in circulation outside the banking system.

m1 (narrow family coins) = (m0) cash in circulation + check deposits (and transfer credit card deposits);

M2 (broad money) = M1 + savings deposits (including demand and time savings deposits);

M3 = M2 + other short-term liquid Zhaozhou assets (such as treasury bills, banker's acceptance bills, commercial papers, etc.).

In economics, the term "m2" is usually M2, and M2 does not include quasi-money.

However, in a broad sense, M2M can represent the connection and communication between machine to machine, man to machine, machine to man, and mobile network to machine, which covers all technologies and means to establish communication connections between people, machines and systems.

The development of M2M.

The M2M application market is growing rapidly around the world, and with the deepening of related technologies including communication equipment and management software, and the reduction of the cost of M2M products, the M2M business will gradually mature. At present, in the United States, Canada and other countries, it has realized the application of safety monitoring, mechanical services, maintenance business, vending machines, public transportation systems, fleet management, industrial process automation, electric machinery, urban informatization and other fields.

According to a report by IDATE, a well-known European industry consulting agency, in 2006, the global M2M market capacity has reached 20 billion euros, and by 2010, the market capacity will reach 220 billion euros, with a compound annual growth rate of 49%.

m1: i.e. macroeconomics. It includes a country's national economic aggregate, national economic composition, industrial development stage and industrial structure, and economic development degree (human development index, social development index, social welfare index, happiness index).

m2: i.e. broad money. Including M1 + quasi-currency (time deposit + resident savings deposit + other deposit + ** corporate customer deposit + housing provident fund center deposit + deposit of non-depository financial institutions in depository financial institutions).

Bank Savings: i.e. the amount of deposits deposited by residents in banks.

MMF: Money Market Funds refers to an investment that invests in the money market that has a short-term value.

The basic idea of M0, M1 and M2 is to divide according to the liquidity of money, and China's current monetary statistics system divides the amount of money into three levels:

1. m0 = cash in circulation, which refers to the sum of cash in hand of various units outside the banking system and cash in hand of residents.

2. M1 = M0 + corporate demand deposits of non-financial companies, and the amount of money in the narrow sense refers to M0 plus the demand deposits of enterprises, institutions, groups, troops, schools and other units in banks;

3. M2 = M1 + fixed deposits of non-financial companies + savings deposits of residents + other deposits, and the amount of broad money refers to M1 plus the fixed deposits of enterprises, institutions, groups, troops, schools and other units in the bank and the savings deposits of urban and rural residents in the bank and the customer margin.

The difference between M2 and M1, i.e. the sum of the unit's fixed deposit and the individual's savings deposit, is usually referred to as quasi-money.

The popular understanding of m0, m1, and m2 can be expressed as:

1. M0 is the best, because cash will be accepted by any seller when shopping.

2. M1 is centered, and my understanding is that M1 refers to the currency that can be used directly for shopping without going to the bank. Because it is possible to shop directly with a check, let alone cash. Although checks can be purchased, they are not accepted by all sellers, so they are classified in M1 and not in M0.

3. M2 is secondary, I think M2 can be understood as a currency that "can achieve the purpose of shopping", although "fixed deposits and savings deposits of commercial banks" cannot be directly purchased, but you can always go to the bank to withdraw the money to shop.

Usually, the central bank will pay attention to these three monetary indicators to see whether the amount of money circulating in the society is appropriate, and then adjust the monetary policy, such as adjusting interest rates, adjusting the reserve ratio, etc., in order to stabilize the economy and prices.

At this stage, China divides the amount of money into three levels, the meanings of which are: M0: cash in circulation, that is, cash in circulation outside the banking system; m1：

Narrow money **, i.e., M0 demand deposits of enterprises and institutions; M2: Broad Money** Amount, i.e. M1 Time Deposits of Enterprises and Institutions Residents' Savings Deposits. m3：

M3 is set according to the continuous innovation of financial instruments, M3 is equal to M2 + other short-term liquid assets (such as treasury bills, bank acceptance bills, commercial papers, etc.) Among these four levels, M0 is closely related to changes in consumption and is the most active currency; M1 reflects the changes in the tightness of household and corporate funds, and is a leading indicator of economic cycle fluctuations, and its liquidity is second only to M0. M2 liquidity is weak, but it reflects the changes in the total demand of the society and the pressure of future inflation.

The meanings of m0 m1 m2 m3 are as follows:

1. Cash in circulation (m0) refers to the sum of the cash in hand of each unit outside the banking system and the cash held by residents.

2. The amount of money in the narrow sense (M1) refers to M0 plus the unit's demand deposit in the bank.

3. The amount of broad money (M2) refers to M1 plus the fixed deposits of the unit in the bank, the savings deposits of urban and rural residents in the bank and the customer margin.

The relationship between the amount of money:

1. If M1 is too high and M2 is too low, it means that the enterprise has more demand deposits, strong investment willingness and faster economic expansion.

2. If M2 is too high and M1 is too low, it means that the profitable investment opportunities in the real economy are decreasing, and the money is unwilling to enter the real circulation, and it is piled up in the financial system.

Bank Profile:

A bank is a financial institution established in accordance with the law to engage in monetary and credit business, and is the product of a certain stage in the development of the commodity and monetary economy. Banks are one of the financial institutions, and banks are divided into ** banks, policy banks, commercial banks, investment banks, and the World Bank, and their responsibilities are different.