BANKING & FINANCE - June 4, 1993

Money Supply Lower: The Federal Reserve Board reported that the measure of the nation’s money supply known as M2 fell in the week ended May 26 to a seasonally adjusted $3,500.9 billion from a revised $3,505.4 billion the week before. An even broader measure, M3, fell $7.7 billion to $4,162.9 billion from $4,170.6 billion. The narrowest measure, M1, fell to $1,065.1 billion, down $3 billion from $1,068.1 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.