Definitions of Money

• M1 is a narrow definition of the U.S. money supply. M1 includes coins and paper currency as well as all deposits in banks and savings institutions on which checks can be written. M1 was $1.36 trillion in November 2004.*
• M2 is a broader definition of the U.S. money supply than M1. M2 includes M1 plus savings deposits (including money market deposit accounts), small (less than $100,000) time deposits, and money market mutual funds. M2 was $6.40 trillion in November 2004.*
• M3 is a broader definition of the U.S. money supply than M2. M3 includes M2 plus large ($100,000 or more) time deposits. These large time deposits are generally certificates of deposit owned by businesses. M3 was $9.41 trillion in November 2004.*

* Data are for November 2004 and can be found in Federal Reserve Statistical Release H.6 at www.federalreserve.gov/releases/h6/ .