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
- Why Opko Health Lost More Than a Fifth of Its Value Last Month
- 5 Tax Breaks for the Self-Employed
- Should Priceline's OpenTable Take a Page From Uber's Playbook?
- 3 Unfairly Beaten-Down Tech Stocks
- How Do YOU Want to Spend Your Money in Retirement?
- This Costco Store Closure Spells Trouble... for Staples Inc.