Business, Legal & Accounting Glossary
One measure of the money supply that includes all coins, currency held by the public, traveler’s checks, checking account balances, NOW accounts, automatic transfer service accounts, and balances in credit unions.
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.
We had to see how all of our M1 was doing and that made us all really upset because we did not know what to do.
The M1 measure for the total wealth or assets of a system is a fair, unspoiled way to assess such a money supply.
The M1 amount was mentioned during the meeting as its fluctuations could perhaps be directly correlated to the health of our stock price.
narrow money
M3
M2
broad money
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This glossary post was last updated: 6th November, 2021 | 0 Views.