What classification includes all of M2 along with long-term repurchase agreements?

The classification that includes all of M2 along with long-term repurchase agreements is M3. M2 encompasses cash, checking deposits, and near-money assets like savings deposits and money market securities, which are considered to be highly liquid. M3 builds on this by adding larger liquid assets, such as long-term repurchase agreements and institutional money market funds.

In this context, the significance of M3 lies in its broader scope compared to M2, effectively capturing a wider array of monetary assets. This broader classification allows for a more comprehensive understanding of the money supply and liquidity in the economy. Additionally, long-term repurchase agreements are key components reflecting a deeper layer of financial instruments utilized by financial institutions for liquidity management.

Since M3 includes all of M2 and adds these additional financial instruments, it provides policymakers and economists with greater insights into monetary conditions and the overall health of the financial system.