Define: M1

Business, Legal & Accounting Glossary

Definition: M1



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Full Definition of M1


In the US, M1 is a narrow measure of the money supply. M1 is defined as all currency in circulation plus checking account deposits and other checkable deposits in banks, credit unions, and other depository institutions. Savings deposits, time deposits, and most other deposits at financial institutions are not included in M1. The deposits included in M1 are those that the Federal Reserve imposes reserve requirements on depository institutions for holding. M1 is sometimes called narrow money. M1 is very easy for the Federal Reserve to control through open market operations, but broader measures of the money supply such as M2 and M3 tend to have a stronger relationship to inflation. Unlike M1, M2 and M3 can be influenced by monetary policy only indirectly.


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https://payrollheaven.com/define/m1/
Modern Language Association (MLA):
M1. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/m1/.
Chicago Manual of Style (CMS):
M1. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/m1/ (accessed: April 05, 2020).
American Psychological Association (APA):
M1. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/m1/

Definition Sources


Definitions for M1 are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th February, 2020