The M2 Money Multiplier
The M2 money supply is defined as the M1 money supply plus time deposits T plus
 money market mutual fund shares
 plus money market deposit accounts
 plus overnight repurchase agreements
 plus overnight Eurodollars.
To keep matters simple all of the above items will be grouped together
as MMF. Thus
M2 = M1 + T + MMF.
Let r_{T} be the required reserve ratio on time deposits.
The required reserves at the Fed are then
RR = r_{D}D + r_{T}T.
Thus the monetary base and the M2 money supply are:
MB = r_{D}D + r_{T}T + ER + C =
(r_{D} + r_{T}(T/D) + ER/D + C/D)D
M2 = D + C + T + MMF =
(1 + C/D + T/D + MMF/D)D
The M2 money multiplier m_{2} is given by:
m_{2} = M2/MB =
(1 + C/D + T/D + MMF/D) 
(r_{D} + r_{T}(T/D) + ER/D + C/D)

(To be continued.)