Money Supply Measures Fall: All three measures...

Money Supply Measures Fall: All three measures of the nation’s money supply dropped in early May, the Federal Reserve reported. The narrowest measure of the money supply, M1, fell $8.7 billion in the week ended May 8 to a seasonally adjusted $772.9 billion from $781.6 billion the previous week. The central bank said a broader measure known as M2 lost $1.9 billion to a seasonally adjusted $3,069.7 billion from $3,071.6 billion the previous week. An even broader measure, M3, fell $1.8 billion to a seasonally adjusted $3,953.3 billion from $3,955.1 billion. M1 includes cash in circulation, deposits in checking accounts and non-bank travelers checks. M2 is M1 plus accounts such as savings deposits and money market mutual funds. M3 is M2 plus less liquid accounts such as certificates of deposit in minimum denominations of $100,000.