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Why are m3 and m2 higher than m1?

Updated: 10/26/2022
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because 3>2>1 ?

Other than that, depends on what m1,m2 and m3 represent.

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Q: Why are m3 and m2 higher than m1?
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Which is the most liquid measure of money supply?

M2. M2 consists of M1(coins, bills, travlers checks/checkable deposits), savings accts, money market accounts, demand deposits, and timed deposits. M2 is less narrow than M1, therefore being more liquid/spendable. *The Fed has defined three monetary aggregates M1, M2, and M3. The narrowest definition, M1, includes the transaction deposits of banks and cash in circulation. M2 adds savings accounts, small time deposits at banks, and retail money market funds. M3 adds large time deposits, repurchase agreements, Eurodollars, and institutional money market funds. In March 2006 the Fed discontinued tracking M3 because it does not convey information about economic activity that is not already embodied in M2


Are bonds included in M2?

Nope they are only in the broadest measure of monetary assets, M3


How much money is in circulation in the world today?

To make this question answerable in a finite amount of time, let's simplify things and ask, "How much money is there in actual United States dollars?" Since the statistics for the U.S. are easy to come by, we can examine this question in a couple of different ways.M1 represents all of the currency in the M0 money supply, plus all of the money held in checking accounts and other checkable accounts, as well as all of the money in travelers' checks. In July 2009, the M1 money supply for U.S. dollars equaled about $1,655.6 billion [source: Federal Reserve].M2 is the M1 supply, plus all of the money held in money market funds, savings accounts and small CDs. In July 2009, the M2 money supply was about $8,326.8 billion [source: Federal Reserve].M3 is M2 plus all of the large CDs. As of March 2006, the Fed no longer tracks the M3 money stock as an economic indicator. That month, M3 totaled around $10.3 trillion [source: St. Louis Fed].All told, anyone looking for all of the U.S. dollars in the world in July 2009 could expect to find around $8.3 trillion in existence.


Explain the measures of money supply in India?

MEASURES OF MONEY SUPPLY IN INDIAThe Reserve Bank of India defines the monetary aggregates as:Reserve Money (M0): Currency in circulation + Bankers' deposits with the RBI + 'Other' deposits with the RBI = Net RBI credit to the Government + RBI credit to the commercial sector + RBI's claims on banks + RBI's net foreign assets + Government's currency liabilities to the public - RBI's net non-monetary liabilities.M1: Currency with the public + Deposit money of the public (Demand deposits with the banking system + 'Other' deposits with the RBI).M2: M1 + Savings deposits with Post office savings banks.M3: M1+ Time deposits with the banking system = Net bank credit to the Government + Bank credit to the commercial sector + Net foreign exchange assets of the banking sector + Government's currency liabilities to the public - Net non-monetary liabilities of the banking sector (Other than Time Deposits).M4: M3 + All deposits with post office savings banks (excluding National Savings Certificates).


Money stock measures?

DEFINITIONS OF MONEY STOCK MEASURES AND COMPONENTS (from FRS H.6 release, 12/28/06) "Depository institutions" includes domestically-chartered commercial banks, thrift institutions (savings banks, savings & loan associations - S&Ls, credit unions), the U.S. branches and agencies of foreign banks, and Edge Act corporations. M1 consists of: 1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; 2) traveler's checks of non-bank issuers (traveler's checks issued by depository institutions are included in demand deposits); 3) demand deposits at domestically-chartered commercial banks, the U.S. branches and agencies of foreign banks, and Edge Act corporations (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and 4) other checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions. Seasonally adjusted M1 is constructed by summing currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately. M2 consists of: M1 plus 1) savings deposits (including money market deposit accounts); 2) small-denomination time deposits (time deposits in amounts of less than $100,000), less individual retirement account (IRA) and Keogh balances at depository institutions; and 3) balances in retail money market mutual funds, less IRA and Keogh balances at money market mutual funds. Seasonally adjusted M2 is constructed by summing savings deposits, small-denomination time deposits, and retail money funds, each seasonally adjusted separately, and adding this result to seasonally adjusted M1. More details about these money measures, the components, their measurement, and reporting can be found at the December 2003 "Performance Evaluation of the H.6 Statistical Release, Money Stock Measures" at: http://www.federalreserve.gov/releases/h6/perfeval2006.htm Note that the FRS discontinued publication of the M3 monetary aggregate and several of its components in March 2006. See: http://www.federalreserve.gov/releases/h6/discm3.htm page last checked & updated 1/8/08

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Which is the most liquid measure of money supply?

M2. M2 consists of M1(coins, bills, travlers checks/checkable deposits), savings accts, money market accounts, demand deposits, and timed deposits. M2 is less narrow than M1, therefore being more liquid/spendable. *The Fed has defined three monetary aggregates M1, M2, and M3. The narrowest definition, M1, includes the transaction deposits of banks and cash in circulation. M2 adds savings accounts, small time deposits at banks, and retail money market funds. M3 adds large time deposits, repurchase agreements, Eurodollars, and institutional money market funds. In March 2006 the Fed discontinued tracking M3 because it does not convey information about economic activity that is not already embodied in M2


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