MONEY SUPPLY Definition

MONEY SUPPLY is the three categories of money supply (MI, M2, M3) as defined by the U.S. Federal Reserve Board.

M1 The sum of-currency held by the public, plus travelers' checks, plus demand deposits, plus other checkable deposits-i.e., negotiable order of with­drawal (NOW) accounts, automatic transfer service (ATS) accounts and credit union share drafts.

M2 MI plus savings accounts and small-denomina­tion time deposits, plus shares in money market mutual funds (other than those restricted to institu­tional investors) and overnight Eurodollars and repurchase agreements.

M3 M2 plus large-denomination time deposits (over $100,000) at all depository institutions, large­-denomination term repurchase agreements and shares in money market mutual funds restricted to institutional investors.

Learn new Accounting Terms

NET INTEREST MARGIN is the interest income earned on assets less interest expense paid on liabilities and capital. NET INTEREST MARGIN is the gross margin for financial institutions.

PRODUCT is: a. the end result of the manufacturing process, b. commodities offered for sale, or c. an artifact that has been created by someone or some process.

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