What is M1 and M2 money?
M2 is a calculation of the money supply that includes all elements of M1 as well as “near money.” M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds, and other time deposits.
What is M4 money?
Broad money e.g. M4 money supply is defined as a measure of notes and coins in circulation (M0) + bank accounts. It is a broader definition because it includes bank accounts and not just notes and coins in circulation.
How many types of money are there?
There are 5 different types of money in the world: Fiat, commodity, representative, fiduciary, and commercial bank money. They also all have three functions in common; they serve as a medium of exchange, as a store of value, and as a unit of account.
Which are the types of deposit?
Traditionally, there are four types of bank deposits in India, which are – Current Account, Recurring Deposits, Savings Accounts, and Fixed Deposit Accounts.
What are the 6 types of money?
5 Types Of Money
- Fiat Money. Examples: Banknotes (paper money) and coins.
- Commodity Money. Examples: Precious metals (i.e. gold), salt, beads, alcohol.
- Representative Money. Examples: Certificates, paper money, token coins.
- Fiduciary Money. Examples: Checks, bank drafts.
- Commercial Bank Money.
What are the 3 types of money?
Money comes in three forms: commodity money, fiat money, and fiduciary money. Most modern monetary systems are based on fiat money. Commodity money derives its value from the commodity of which it is made, while fiat money has value only by the order of the government.
What types of money are included in the M2 category?
M2 is a measure of the U.S. money stock that includes M1 (currency and coins held by the non-bank public, checkable deposits, and travelers’ checks) plus savings deposits (including money market deposit accounts), small time deposits under $100,000, and shares in retail money market mutual funds.
What kind of money are included in M1?
M1 money supply includes those monies that are very liquid such as cash, checkable (demand) deposits, and traveler’s checks M2 money supply is less liquid in nature and includes M1 plus savings and time deposits, certificates of deposits, and money market funds.
What are M0 funds?
The monetary base, or M0, is equal to coin currency, physical paper, and central bank reserves. M1, typically the most commonly used aggregate, covers M0 in addition to demand deposits and travelers’ cheques.
What is Mo in money supply?
M0 refers to the most liquid form of money: cash. That includes central bank notes and coins. MB refers to the base money supply from which banks can extend the money supply. In addition to M0, that also includes central bank deposits, which can’t be used to pay anyone other than banks.