The narrowest official definition of the money supply is

Question

Quizplus · Accepted Answer

The narrowest official definition of the money supply is M1, which includes only the most liquid forms of money, such as physical currency, demand deposits, and traveler's checks. M1+ adds savings deposits to this definition, while M1++ includes small time deposits as well. M2+ adds larger time deposits and money market mutual funds, while M2++ includes all of these plus institutional money market accounts and Eurodollars. M3 is the broadest definition, including all forms of money regardless of their liquidity.

The Narrowest Official Definition of the Money Supply Is