The US also has three measures of money called M1, M2 and M3 which are published by the Federal Reserve.
- M1 consists of money held for transactions purposes such
as notes and coin, travellers cheques and cheque accounts.
- M2 is equal to M1 plus deposits which are close to transaction accounts and which can be converted fairly readily to M1 with little or no loss. These are mainly household holdings of savings deposits, time deposits and retail money market mutual funds.
- M3 is equal to M2 plus accounts by economic agents other than individuals. These include large time deposits as well as institutional money market mutual funds, repurchase agreements and eurodollars.
