BANKING & FINANCE - June 10, 1994

Money Supply Drops: For the week ended May 30, the measure known as M2 fell $7 billion to a seasonally adjusted $3,589.2 billion from a revised $3,596.2 billion the week before, the Federal Reserve Board said. A broader measure, M3, fell to $4,215.7 billion, down $3.8 billion from $4,219.5 billion. The narrowest measure, M1, fell $400 million to $1,143.8 billion from $1,144.2 billion. M1 includes cash in circulation, deposits in checking accounts and non-bank traveler’s 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.