BANKING & FINANCE - July 19, 1991

Money Supply Declines: The Federal Reserve Board reported that the measure of the nation’s money supply known as M2 fell in the week ended July 8 to a seasonally adjusted $3,389.5 billion from a revised $3,396.4 billion the week before. A broader measure, M3, fell to $4,150.5 billion from $4,150.8 billion. The narrowest measure, M1, fell $5.2 billion to $856.7 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.