BANKING & FINANCE - May 1, 1993

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 April 19 to a seasonally adjusted $3,468.3 billion, down $1.4 billion from a revised $3,477.7 billion the week before. An even broader measure, M3, fell $5.3 billion to a seasonally adjusted $4,133.4 billion from a revised $4,138.7 billion. The narrowest measure of the money supply, M1, fell to a seasonally adjusted $1,038.7 billion from $1,043.6 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.