To date, the most well-known component of the money supply is cash. This concept combines both coins and banknotes, which together are only a small part of the means of circulation. Currently, their modern expression is represented by checking accounts (demand deposits). They are materially intangible.
The main reasons for keeping money in cash
It is known that there are four of them, in particular:
- absolute liquidity of this type of means of circulation;
- ease of use as means of payment;
- reserve aspect in case of urgent need for financial expenses;
- fear of inefficient investment of cash.
What are monetary aggregates?
In the modern aspect, they consist of two dominant groupings of liquid assets, acting as alternative measures of the entire money supply.
The monetary aggregate M1 is represented by cash and transaction deposits, more precisely, special deposits, the funds on which are available for transfer to third parties as an electronic transfer or payment by check. A significant number of exchange transactions in countries with a developed market economy are carried out mainly through the above aggregate, where money acts as a direct means of circulation.
What is the second grouping of liquid assets that measure the money supply?
The M2 money supply covers a wider spectrum. In addition to its main function, money in this case also acts as a means of accumulation. The monetary aggregate under consideration includes:
- deposit accounts;
- term deposits;
- demand deposits, etc.
That is, these are assets that have a fixed nominal value and can be transformed into a means of payment. At the same time, they are deprived of the possibility of transfer by other persons and do not give their owner the right to pay by check. With regard to demand deposits, there is an insignificant income from interest. It is M1 that services certain operations regarding the implementation of such an indicator as gross domestic product, and also distributes and redistributes national income, and much more. 
The M2 money supply within the financial markets of developed countries refers to money market mutual funds, more precisely, investment companies that issue their own shares and thereby attract money, which are subsequently invested in various securities of industrial or other corporations. In general, this aggregate acts as a liquid store of value.
Savings deposits in commercial banks can be withdrawn at any time and transformed into cash. With regard to time deposits, they become available to the depositor only after a certain period. Thus, they are less liquid (unlike savings deposits).
M3 as a money supply meter
It is represented by less liquid assets, in particular term reissue agreements, term loans in titles of money market mutual funds and eurodollars, as well as certificates of deposit. It can be said that the monetary aggregate M3 supplements M2 with significant time deposits (securities, certificates), which are easily transformed into vouchers.
What is the narrowest measure of the money supply?
The monetary aggregate M0 is represented by cash participating in the circulation process, namely:
- metal coins;
- banknotes;
- treasury notes.
Metal coins provide the ability to make minor transactions. As a rule, they are minted from inexpensive metal. The real valuation differs significantly from the nominal in favor of the latter. This is done in order to prevent the possibility of their melting down into ingots for speculative purposes.
Treasury notes are paper money issued by the Treasury. They are used mainly in underdeveloped countries, for example in the Republic of Djibouti or the Kingdom of Tonga.
Banknotes occupy a leading position in circulation.
Monetary aggregates in Russia
As you know, money in the framework of the modern economy is not only coins and banknotes, representing cash, but also checks, bank deposits and other representatives of a non-cash form.
Money supply and monetary aggregates are interrelated concepts. The latter follows from the former. This chain is formed due to the fact that the money supply can be represented as a combination of its active and passive parts. The first is cash and non-cash funds that serve the economic turnover of the country. The passive part acts as funds temporarily not used in settlements.
The components of the money supply have distinctive features in terms of the speed and ease of their transformation into cash. It is as a result of this distinction that the corresponding monetary groups (monetary aggregates) are formed. In addition, each subsequent unit complements the previous one, subject to several amendments. In Russia, this allocation is carried out by the Central Bank.
The structure of monetary aggregates in our country is as follows:
- M0 - coins and banknotes involved in the circulation process.
- M1 = M0 + funds on current, settlement and special accounts of companies, household deposits placed in banks on demand, funds of insurance companies.
- М2 = М1 + compensations and fixed-term bank deposits of households.
- М3 = М2 + bonds and government loan certificates.
The difference between the above structure and the foreign version of its representation
In general, monetary aggregates in Russia do not have significant differences from the American classification of these concepts. However, in the USA, as a rule, the M0 aggregate is not distinguished, and M3 has a more detailed distinction.
Thus, the first grouping in the US is represented by cash. The M1 monetary aggregate supplements the M0 grouping with demand deposits, checking deposits and traveler's checks. The M2 group, in addition to the above components, includes shares of the VFDR and term deposits in the range of 100 thousand dollars. The M3 unit (except for those included in the previous monetary group) consists of term deposits with a face value of more than 100 thousand dollars, commercial securities. In the American structure, there is a fifth aggregate (L), which includes, among other things, government securities.
So, we can summarize all of the above and conclude that the money supply and monetary aggregates are closely intertwined, more precisely, the second concept together forms the first.
How much money does the economy need to ensure adequate development of the country?
The value of monetary aggregates is calculated within the framework of the classical quantitative economic theory formulated by I. Fisher and A. Marshall. According to her, the value of money is in a certain dependence on their quantitative component.
I. Fisher formed an equation that reflects the indicated dependence:
M x V = P x Q, where
V is the speed of the supposed circulation of money;
Q - the volume of goods sold;
M - the value of the money supply;
P is the total indicator of commodity prices.
Based on the above formula, you can determine the desired value of the required money supply. It is equal to: M = P x Q: V.
What determines the value of the money supply?
It is associated with three indicators, in particular:
- The price of the total volume of goods produced and offered for sale.
- The average price level in a particular country.
- The speed of circulation of money.
If, for example, the money supply makes one turnover, i.e., the incomes of the corresponding economic entities go to purchase goods, and subsequently return in the form of the same incomes back, then one conditional value of the money supply will be required. And then, if it makes not one, but three revolutions, it will take three times less money. In the case of an increase in the money supply to the limits exceeding the allowable level, inflation occurs.
The concept of liquidity in relation to the aggregates under consideration
Money primarily acts as a universal measure of the economic value of the corresponding market goods. They are used as a means of payment for any of the goods sold.
Money is associated with such a concept as liquidity - a property of assets in a market economy. So, any asset can be a means of payment. The difference is only in the costs associated with the process of its exchange for the purchased good.
Exchange costs are commonly referred to as transaction costs.
Thus, assets can be classified according to the degree of liquidity. The leader in this regard is, of course, cash, which has the property of direct exchange with zero costs. The liquid approach is the basis for such a concept, already discussed earlier, as monetary aggregates - a grouping of liquid assets to calculate their total value.
The most liquid assets from the point of view of the Central Bank of Russia are:
- Cash form of money, including money in cash desks of commercial banks.
- Funds of commercial banks placed on the corresponding correspondent accounts with the Central Bank.
- Funds in deposit accounts of the Central Bank.
- Funds of commercial banks held in the mandatory reserve fund of the Central Bank.
What are the main functions of money?
There are only three of them, namely:
- medium of exchange;
- a means of accumulating wealth or savings;
- the measure of value.
Money and monetary aggregates are two basic concepts that are central to a broader category such as the money supply.
Control over their quantity is carried out by the state within the framework of monetary or monetary policy. As mentioned earlier, this function is assigned in Russia to the Central Bank, and monetary aggregates (M0, M1, M2, M3) act as measuring instruments.
In the aspect of macroeconomic analysis, the M1, M2 groupings are most often used. Also, sometimes such an indicator of cash as “quasi-money” is distinguished, which has the designation QM and is the difference between the aggregates M2, M1. It is represented by savings and time deposits, therefore, M2 can be expressed as the sum of M1 and QM.
The dynamics of monetary groupings depends on a number of factors, including the movement of the interest rate. Thus, if the rate increases, then the aggregates M2, M3 can significantly outperform M1, due to the fact that their constituent components generate income as interest. Recently, the M1 group has begun to include new types of deposits that generate income as interest, and this thereby smooths out the difference in the dynamics of monetary aggregates due to the movement of the interest rate.
Within the framework of Russian statistics, the following narrow interpretations of the main monetary aggregates are used, namely:
- M1 - "money";
- QM - "quasi-money" - savings and time deposits;
- M2 - "broad money".
1) cash and current deposits;
2) cash and term deposits;
3) cash, current and term deposits;
4) highly liquid securities.
This test is an assessment of knowledge on the topic “Money and its functions. Basic monetary aggregates. To answer it correctly, you need to remember what monetary aggregates are and what their structure is. As you know, the amount of money in the country is controlled by the Central Bank. But control without measuring the money supply is impossible. Therefore, to solve this problem, the method of aggregation is used, that is, summation, combining all funds into certain aggregated indicators, called monetary aggregates.
The criteria for allocation of monetary aggregates is the liquidity of various funds. Liquidity refers to the ability to quickly turn this asset into cash without any loss in its value. In accordance with this, the following monetary aggregates are distinguished: M1, M2, M3, M4.
The M1 unit consists of two main elements. First, it is cash, i.e. metal and paper money. Sometimes this part of the M1 assembly is referred to as Mo. And, secondly, these are checking deposits, that is, deposits in commercial banks, savings banks or savings institutions, on which checks can be drawn.
In most countries, cashless payments using checks are a common form of commercial transactions due to their convenience and security. At first glance, it may seem strange that current bank accounts are part of the money supply. But this is easily explained: after all, at the first request of the client, checks and current deposits in banks immediately turn into cash.
Thus, M1 = cash paper and metal money + checking (current) deposits in banks.
The M2 monetary aggregate includes the M1 aggregate, as well as the less liquid part of the financial assets, which primarily include medium-sized term deposits of organizations and individuals. Term deposits, as their name implies, can only be available to the depositor after the expiration of the retention period. For example, a depositor can withdraw without loss three- or six-month deposits only after the expiration of the specified period. If he demands early termination of the agreement concluded with the bank, he is subject to a fine, in accordance with the conditions specified in the agreement. For example, this may be a reduction in the amount of interest due on a deposit to the level of interest on current deposits. Therefore, term deposits have less liquidity than current deposits. This type of deposits is included in the composition of the money supply because after the expiration of the storage period, the depositor receives cash, and this aggregate can also be converted into cash even before the expiration of the storage period, however, with certain losses.
The Mz monetary aggregate includes the M2 aggregate, as well as large term deposits (for example, in the United States, large term deposits include deposits exceeding $ 100,000), as well as certificates of deposit, repurchase agreements. Large deposits are obviously less liquid than small and medium ones, since the depositor will have greater losses in case of early termination of the agreement than in case of termination of agreements on small and medium deposits. However, after the expiration of the retention period, these deposits can also be converted into cash or transferred to a current account. Therefore, the aggregate M3 also refers to the money supply.
The M4 aggregate is the M3 aggregate with short-term treasury bills, savings bonds, commercial bills. With this knowledge, let's analyze the test task. Answer #1 certainly represents the money supply M1. Answer No. 2, although it includes time deposits related to the required aggregate M2, will be incorrect, since M2 is the sum of M1 and time deposits. And the aggregate M1 includes, as noted above, not only cash, but also current deposits in banks. Therefore, answer #2 is incorrect, since the assembly M1 is not fully represented in it.
Consider answer No. 3. It lists all the necessary structural elements of the monetary aggregate M2. That's why option 3 is correct.
Since there may be multiple answers in the tests, we will analyze answer No. 4. The highly liquid securities indicated in it are an integral part of the M4 monetary aggregate and are not directly related to the M2 monetary aggregate.
Money supply is the most important indicator of the amount of money in circulation. The money supply includes the total amount of money - cash and non-cash, which is currently in circulation, belongs to various economic entities. In addition to money, it may include other highly liquid financial assets that can be converted into money with minimal loss of time and money. These include, for example, certificates of deposit of large commercial banks, short-term treasury bills, Treasury savings bonds. The order in which they are included in the composition of the money supply depends on the national characteristics of its measurement. Thus, the money supply is a heterogeneous indicator in its structure.
To characterize the structure of the money supply, monetary aggregates are used - M0, M1, M2. monetary aggregate is a statistical indicator that characterizes the volume and structure of the money supply.
With all the variety of methods of statistical accounting of the money supply in different countries, monetary aggregates in the most general form can be represented as follows:
М0- includes cash in circulation (banknotes, metallic coins, and in some countries treasury bills), including cash in bank cash desks;
M1- contains the M0 aggregate plus funds in current bank accounts and demand deposits, which can be immediately used either in the function of money as a medium of circulation or as a means of payment;
M2- consists of the M1 aggregate plus fixed-term and savings deposits in commercial banks: funds from these deposits become available to the depositor only after a certain time has elapsed, provided for by the deposit agreement between the bank and its client;
M3- contains the M2 aggregate plus savings certificates in specialized financial and banking institutions;
M4- consists of the M3 aggregate plus shares, bonds, certificates of deposit of commercial banks, bills of individuals and legal entities, i.e. monetary obligations that take a long time to turn into "live" money.
The delimitation of monetary aggregates is based on the degree of their liquidity, i.e. the possibility of quick, with the least risks and costs, the conversion of various forms of deposits and savings into rapidly realizable funds. Monetary aggregates are ranked according to the degree of liquidity decrease. So the monetary aggregates M0 and M1 characterize the most liquid component of the money supply. They include components that fall under the definition of money supply in the narrow sense of the word. Other aggregates of the money supply include money that is used in settlements with certain restrictions. In their essence, they are rather substitutes, or “quasi-money”.
The qualitative composition of monetary aggregates is ambiguous in different countries, which is due both to the traditionally established theoretical ideas about money, the ratio of cash and non-cash components in the total money circulation, money and financial assets, and the specifics of the monetary system and the methods used to regulate it by the central government. bank. So, in the United States, there are 4 main monetary aggregates in the composition of the money supply:
M1- cash in circulation held outside banks, traveler's checks, demand deposits and so-called other checkable deposits;
M2– Aggregate M1 plus non-checkable savings deposits, term deposits in banks, one-day REPO operations (purchase and sale of securities with repurchase and sale), one-day dollar deposits of US residents, funds in mutual fund accounts.
M3- M2 aggregate plus short-term government bonds, term buyout agreements concluded by commercial and savings banks, term Eurodollar deposits of US residents in foreign branches of US banks.
The specificity of the system of monetary aggregates used in the USA is the use of aggregate L, consisting of aggregate M3 plus treasury securities and banker's acceptances placed outside the banking system.
In Japan, central banks use 4 monetary aggregates. However, the widest unit M4 includes, along with cash in circulation, funds on current and term deposits in commercial banks, and also funds invested in one of the types of short-term securities - certificates of deposit.
In France, ten monetary aggregates are used to determine the money supply, in Switzerland and Germany - three, in England - five. Despite the difference in the qualitative composition of monetary aggregates and their different numbers, in recent years there has been a trend towards the universalization of financial markets, which predetermined the gradual convergence of the composition of monetary aggregates.
Each country that is a member of the International Monetary Fund (IMF) calculates the monetary aggregate M1 according to the methodology developed by the Fund - M1 includes cash and all types of checking deposits. Along with it, a broader indicator of the money supply is calculated - “quasi-money”, that is, urgent and savings accounts of banks and the most liquid financial market instruments.
The money supply in the Russian Federation is calculated by the Central Bank as of the 1st day of the month based on the consolidated balance sheet of the banking system. The composition of the money supply in Russia includes the following monetary aggregates:
М0- cash in circulation;
M1- consists of the M0 aggregate plus funds on settlement, current and special accounts of enterprises and organizations, on the accounts of local budgets, budgetary, trade union, public and other organizations, plus State Insurance funds, plus deposits of the population and enterprises in banks, plus demand deposits of the population in Sberbank;
M2- consists of the M1 aggregate plus fixed-term deposits of the population in Sberbank;
M3- consists of aggregate M2 plus certificates and government bonds.
Such a definition of the structure of the money supply increases the activity of money circulation management, as it allows to take into account the degree of pressure of funds in each aggregate on the formation of effective demand, and, consequently, prices in the market of goods and services. In the Russian Federation, the M2 aggregate is used as the main monetary aggregate used in the calculation of current macroeconomic indicators.
In any country, the money supply is the object of constant state regulation. The need for such regulation is determined by the fact that the size of the money supply and the rate of its growth affect the state of other economic indicators. So, for example, if the money supply grows much faster than the volume of national production, then, other things being equal, this can lead to inflation. At the same time, the state resorts to additional money emission in order to stimulate economic growth, and in this case, the increase in the amount of money in circulation reduces the cost of loans and contributes to the expansion of productive investment. If the growth of the money supply does not keep pace with the growth in the volume of national production, then the money in circulation at a constant rate of circulation may not be enough to properly service all payments and settlements, and then the continuity of the national economy may be called into question. Counterparties will simply have nothing to pay each other with, they will not be able to repay the emerging monetary claims. Moreover, the main debtor, as a rule, will be the state. This is what will keep the money supply from growing.
The amount of money needed for circulation depends not only on the volume of economic turnover in the country, but also on the velocity of money circulation. With the acceleration of the turnover of money, it is possible to serve a greater economic turnover with a smaller amount of money as a medium of circulation and a means of payment.
In addition to indicators of the velocity of circulation of the money supply in the Russian Federation, the following are determined:
The rate of return of money to the cash desks of the institutions of the Central Bank of the Russian Federation as the ratio of the amount of money received at the bank's cash desks to the average statistical mass of money in circulation;
The velocity of circulation of money in cash circulation, which is calculated as the ratio of the amount of receipts and issuance of cash to the average annual mass of money in circulation.
In modern economic literature, a generally accepted concept has been formed about the need to single out among the various types of functional money the so-called strongest money, which means the amount of central bank liabilities in relation to the private sector, reflected in its balance sheet. As a development of the concept of “the most powerful money”, the term “ monetary base”, i.e. the total of those liabilities of the central bank towards the private sector that it has the ability to control. The components of the monetary base are banknotes and coins held by the population and in the cash desks of banks, funds of commercial banks deposited with the central bank in the form of required reserves. In the Russian Federation, a “narrow” and “broad” monetary base is calculated. The concept of a narrow monetary base includes the M0 aggregate (cash in circulation), plus cash in banks' cash desks and banks' required reserves in the Bank of Russia. The broad monetary base additionally includes funds of commercial banks on correspondent accounts with the Central Bank of the Russian Federation. Changes in the structure of the monetary base are characterized by an increase in the share of cash in circulation, the preservation of an almost unchanged share of required reserves, with a relative reduction in its other components.
Sources of growth in the monetary base can be both an increase in net international reserves Bank of Russia and the Government of the Russian Federation, as well as the volume of their net domestic assets. In the Russian Federation after 1998, the main source of growth in the monetary base is the increase in net international reserves, which occurs due to the purchase of foreign currency by the Bank of Russia in the domestic market and due to the reduction of the Russian Federation's debt to the IMF. The volume of net domestic assets decreased during this period, mainly as a result of an increase in the balances of budgets of all levels and state non-budgetary funds in the accounts of the Bank of Russia.
The connection between the monetary base and the money supply is carried out through the mechanism money multiplier. By controlling the mechanism of the bank multiplier, the Central Bank expands or narrows the issuing capacity of commercial banks, thereby affecting the volume of money supply in circulation. The Bank of Russia annually, as part of its monetary policy, sets money supply growth targets, which are calculated taking into account the dynamics of GDP and the possible money supply, are considered as. In recent years, in the Russian Federation, the benchmarks for the growth of the money supply (M2 aggregate) were set as intermediate goal monetary policy. They are determined on the basis of such macroeconomic indicators as the dynamics of GDP and the projected growth in consumer prices in the proposed period. In addition, in the conditions of dollarization of the domestic economy, when forecasting the ruble money supply, it is necessary to take into account the possible movement of funds in the foreign currency accounts of all market participants.
In the process of regulating the volume of the money supply, the purchasing power of money is determined, on which the quality of the performance by money of the function of a measure of value and a means of accumulation depends. Only with a stable purchasing power and stability of the monetary unit, money can be effectively used to measure the cost of all goods, to calculate and compare various economic indicators, assess their dynamics, and also create a reliable basis for regulating the economy by monetary methods. The depreciation of money, the decrease in their purchasing power leads to the fact that a stable foreign currency is used as a measure of value in the national economy, ensuring comparability of prices over time. Prices for all goods are set not in national monetary units, but in foreign ones, for example, in dollars. As a store of value, depreciating national money is also being replaced by foreign currency. The population, followed by enterprises and organizations, prefer to keep their savings in foreign currency, most often in dollars. There is a process of "dollarization" of the economy.
The performance of money as a means of circulation and means of payment, of course, also depends on their stability, but to a lesser extent than the other two functions. Experience shows that even with a high degree of depreciation, national money continues to be used as a medium of exchange and a means of payment, since it acts as a "fleeting intermediary", which reduces the losses of settlement participants to a minimum. But at high inflation rates, even a fleeting presence of heavily depreciating money on hand entails tangible losses for their holders. Therefore, in conditions of hyperinflation, money and in the functions of a means of circulation and payment are also being replaced by foreign currency. However, with the relative stability of the purchasing power of money, the quality of their performance of these functions is determined mainly by the efficiency of the payment system.
monetary aggregate- a measure of the amount of money or financial assets classified as money supply
Monetary aggregate M2
Second monetary aggregate M2 has a broader character than the M1 monetary aggregate, since money is used in it in the same way as a store of value. It includes those assets that have a fixed nominal value and can be converted into a means of payment. But directly specified assets cannot be transferred from one person to another. The most familiar to us are deposit accounts, demand savings deposits and term deposits. They do not entitle asset owners to use checks, and demand deposits earn negligible interest. In addition, in the financial markets of developed countries, money market mutual funds, i.e., those intermediaries who submit so-called titles of ownership to the population and buy short-term securities with a fixed interest rate, are included in the M2 monetary aggregate. The resulting profit from these securities passes to the owners of the titles of ownership. While in principle money market funds can be used for payments, this rule is rarely used in practice.
The composition of the monetary aggregate M2 includes highly liquid financial assets, such as time deposits and short-term government securities, which, although they do not function directly as a medium of exchange, are easily converted into cash. This way you can withdraw cash from term deposit at a commercial bank or savings institution. Or you can also request a transfer of funds from such an account to a current account.
It is necessary to pay attention to the fact that each country has its own official definition of the monetary aggregate M2. For example, in the UK, M2 is a measure of the money supply, which includes cash in circulation, private sector sterling current and interest-bearing bank accounts, deposits in building societies and savings banks; in the USA - M1 plus savings accounts, term accounts up to $100,000, one-day Eurodollar deposits, shares of money market mutual funds, etc. Therefore, with a general understanding of the essence of this monetary aggregate, the nuances can vary significantly.
In general, the monetary aggregate M2 is intended not for circulation, but for accumulation, and that is why it is characterized as a liquid means of accumulation. It is the relationship of the state with M2 that causes the need for devaluation and revaluation of the currency.
The monetary aggregate M2 better reflects the relationship of the money supply with other economic variables that appear in
the money exchange equation: M * V =Py, namely with the velocity of money V, the weighted price level P and the real volume of production y. Therefore, since the 1980s, many economists have become inclined to think that the M2 parameter is more suitable as a basis for the theory and conduct of economic policy.
There are, however, other points of view, whose supporters do not consider any of the parameters (M1, M2 and M3) to be optimal, and therefore recommend choosing a monetary aggregate that would be a common weighted aggregate of all liquid assets.
Monetary aggregate M1
Monetary aggregate M1
M1 money supply - in the US - the narrowest measure of the money supply, including deposits not owned by the federal government, central bank or financial institutions:
+ cash (currency); the share of cash in M1 is less than 1/3;
+ funds on current accounts (transaction deposits);
+ demand deposits (demand deposits);
+ Other checkable deposits.
The structure of M1 does not include "plastic money".
In English: Monetary aggregate M1
Synonyms: Money for transactions
English synonyms: transaction money
Finam Financial Dictionary.
See what "Money supply M1" is in other dictionaries:
The United States has the broadest definition of the money supply. L = M3 + short-term treasury securities. In English: Monetary aggregate L See also: Monetary aggregates Financial Dictionary Finam ... Financial vocabulary
In the United States, a measure of the money supply, covering the means of circulation and the means of accumulation. M2 = M1 + + money market deposit accounts; + shares of investment funds of open type (money market mutual fund shares); … Financial vocabulary
In the US, a money supply measure covering M2 + large term deposits ($100,000 or more); + buyback agreements with long terms. In English: Monetary aggregate MZ See also: Monetary aggregates Financial dictionary ... ... Financial vocabulary
monetary aggregate- A composite monetary variable used to measure the supply of money in circulation (and as such is sometimes taken as an intermediate goal of monetary policy or an indicator of the state of the monetary sector), which includes in ... ... Technical Translator's Handbook
- (M1) A broader measure of money supply. In the UK, M1 includes banknotes and coins in circulation plus funds in private sector current accounts plus funds in deposit accounts against which checks are drawn. In the USA it is... Economic dictionary
- (M0) The narrowest measure of money supply used in the UK. It includes banknotes and coins in circulation, bank cash and balances on correspondent accounts of commercial banks in … Economic dictionary
- (M2) The indicator that most closely matches the definition of money in the broad sense of the word. In the UK, M2 includes banknotes and coins in circulation plus funds in interest-free bank deposits, plus funds in deposits… … Economic dictionary
Money supply L- the MOH money supply plus other liquid assets (for example, US Treasury bills and savings bonds) ...
Monetary aggregate M2- monetary aggregate Ml plus the following components: 1) savings deposits and term deposits of small sizes in all depository institutions; 2) one-day REPO agreements in commercial banks; 3) overnight loans in eurodollars of US residents ... ... Modern Money and Banking: A Glossary
Monetary aggregate MZ- M2 monetary aggregate plus the following components: 1) large term deposits (over $100,000) in all depository institutions; 2) term REPO agreements in commercial banks and savings and loan associations; 3) mutual funds ... ... Modern Money and Banking: A Glossary
