Broad money is a key indicator to measure the money supply, but many investors still don't understand what broad money is. What is broad money? The international division of money supply is divided into five levels: M0, M 1, M2, M3 and M4, in which M0 refers to cash in circulation, M 1 refers to narrow money, and M2, M3 and M4 are all broad money. The narrow money M 1=M0+ corporate demand deposits, and the broad money M2=M 1+ savings deposits of urban and rural residents+corporate time deposits+trust deposits+other deposits. The funds of the whole society are usually measured by the broad money M2, so the broad money M2 is also called "the total amount of social money", which includes cash and various deposits in circulation and reflects the total purchasing power of the whole society.

What does M2 growth of broad money mean? The broad money M2 is relative to the narrow money M 1. M 1 reflects the actual purchasing power and is used to measure the buying and selling activities of final commodities. If M 1 grows rapidly, it means that the market is active. M2 mainly measures the trading activities of investment market and capital market. If M2 grows rapidly, it means that investment and intermediate market are active. Generally speaking, money supply is directly proportional to GDP growth and CPI index rise. Whether the growth rate of M 1 and M2 is too fast or too slow, it is not good for the market economy. Excessive growth of M 1 indicates that insufficient investment may lead to inflation, while excessive growth of M2 indicates that investment is overheated, demand is weak and asset prices may rise. Broad money is the symmetry of "narrow money". The sum of narrow money plus time deposits of commercial banks. Because all kinds of time deposits can be withdrawn in advance and converted into real purchasing power, counting them as money can reflect the circulation of money more comprehensively and facilitate the analysis and control of market financial activities.

Finance refers to the issuance, circulation and withdrawal of money, the issuance and recovery of loans, the deposit and withdrawal, the exchange of foreign exchange and other economic activities. The essence of finance is value circulation. There are many kinds of financial products, including banks, securities, insurance, trusts and so on. Finance involves a wide range of academic fields, including accounting, finance, investment, banking, securities, insurance, trust and so on. Financial futures is a kind of futures trading. Futures trading refers to the trading of standardized futures contracts in a centralized trading market by open bidding. Futures contract is the object or subject matter of futures trading, which is uniformly formulated by the futures exchange and stipulates a standardized contract to deliver a certain quantity and quality of goods at a specific time and place. The basic tools of financial futures contracts are various financial instruments (or financial variables), such as foreign exchange, bonds, stocks and price indexes. In other words, financial futures are futures trading based on financial instruments (or financial variables).