The money supply can be broken down into categories, including:
- M1 = Circulating currency that's immediately available to purchase goods and services: cash, checking accounts, travelers checks ...
- M2 = M1 plus deposits or balances -- such as savings accounts or money markets -- that can quickly be converted into the M1 category.
- M3 = M2 plus money that can't be accessed immediately, such as that held by institutions.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Should HP Spend $5.7 Billion on Share Buybacks?
- Why GT Advanced Technologies Stock Has Lost Half Its Value in 3 Months
- Did General Mills Waste $3 Billion of Your Money?
- Why Boardwalk Pipeline Partners' Stock Has Crashed 26.5% in 2014
- Oil Prices Endure Their Worst Quarter in Two Years
- Offshore Drilling: 3 Key Terms Every Investor Needs to Know