M2 includes everything in M1 but also adds other types of:

1. The difference between the two measures is one category. 2. M1 is the narrower measure of the money supply. 3. A broader definition of money, M2, includes everything in M1. 4. It also adds other types of deposits. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_