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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
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

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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