BANKING & FINANCE - May 29, 1992

Money Supply Falls: The Federal Reserve reported that the measure of the money supply known as M2 fell in the week ended May 18 to a seasonally adjusted $3,468.4 billion from a revised $3,475.8 billion the week before. The broader M3 fell to a seasonally adjusted $4,178.6 billion from a revised $4,185.9 billion. The narrowest measure, M1, fell to a seasonally adjusted $953.9 billion from $955.3 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.