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Economists utilize different ways to measure the stock of money or money source, mirrored in different types of financial aggregates, utilizing a categorization technique that concentrates on the liquidity on the financial instrument used as money. The most often employed financial aggregates (or varieties of money) are conventionally selected M1, M2, and M3. They are successively more substantial combination categories: M1 is currency (cash and costs) in addition desire deposits (for example examining accounts); M2 is M1 furthermore savings accounts and time deposits underneath $a hundred,000; M3 is M2 furthermore greater time deposits and similar institutional accounts.
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