Money Supply

The amount of money in an economy at a specific point in time. There are different types of money and are classified as M's. The M1 consists of all cash in circulation, plus all of the money held in checking accounts, as well as all the money in travellers' checks. The M2 consists of M1 plus all of the money held in money market funds, savings accounts, and small-time deposits. The M3 equals M2 plus the large time deposits, the institutional money-market funds, short-term repurchase agreements, along with other liquid assets.