BANKING & FINANCE - May 16, 1992

Money Supply Grows: The Federal Reserve reported that the measure of the nation’s money supply known as M2 rose in the week ended May 4 to a seasonally adjusted $3,471.0 billion from $3,461.2 billion the week before. An even broader measure, M3, rose to a seasonally adjusted $4,178.8 billion from $4,177.1 billion. The narrowest measure of the money supply, M1, rose to $951.7 billion from $941.2 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.