M2

M3: M3 is an even broader measure of money supply that includes all components of both M1 and M2 plus large time deposits held by institutional investors.

Liquidity: Liquidity refers to how easily an asset can be converted into cash without significant loss in value. Assets with high liquidity can be quickly turned into spendable currency.

Fractional Reserve Banking System: Fractional reserve banking system is a banking system where banks are required to keep only a fraction (a certain percentage) of their customers' deposits as reserves, allowing them to lend out the rest.