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Investments & Financial Planning

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  4. In relation to the stock market , what are M1 M2 M3 indicators ?

In relation to the stock market , what are M1 M2 M3 indicators ?

The amount of money in the economy is sometimes referred to as the M1 M2 M3 indicators. M1 is a measure of domestic money supply accounting for currency, checking account balances and traveler's checks. M2 is a measure of domestic money supply accounting for M1 plus savings and time deposits, repurchase agreements and money market accounts. M3 is a measure of money supply that includes M2 plus large time deposits and money market fund balances held by institutions.

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