Terms and concepts

M0 = Federal Reserve Notes + US Notes + Coins.

MB = Coins + US Notes + Federal Reserve Notes + Federal Reserve Deposits.

M2: M1 + most savings accounts, money market accounts, retail money

M3: M2 + all other certificates of deposit (large time deposits, institutional money market mutual fund balances),

M4-: M3 + commercial paper.

M4: M4- + treasury bills (or M3 + commercial paper + T-bills)

MZM: “Money Zero Maturity” M2 – time deposits + money market funds.

L: The broadest measure of liquidity that the Federal Reserve no longer tracks. M4 + Bankers’ Acceptance

asset

item of value owned by a firm or an individual