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MEASURING MONEY

Financial analysts classify money as Most liquid Least liquid


M1, M2, and M3.

Liquidity, which is the ease with Institutional


which an asset is converted to cash, money market
funds
differentiates these categories.

Near, near money


Funds at
non-U.S. banks

CDs or similar types


of interest-bearing
deposits valued
over $100,000

Retirement accounts

CDs or similar types


of interest-bearing

Near money
deposits valued
under $100,000

Money market
accounts

Savings accounts

Cash on hand

Checking accounts
at U.S. banks,
credit unions etc.

Travelerʼs checks

M1 M2 M3
All M1 Items, plus All M2 Items, plus
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