How does M2 work?

Excuse me, could you please elaborate on how M2, the broad money supply metric, functions within the financial system? I'm curious to understand the composition of M2 and how it's calculated, as well as its significance in influencing monetary policy and economic activity. How does it differ from narrower measures of money supply like M1, and how does the Federal Reserve take M2 into account when making decisions about interest rates and money supply? Thank you for your time.