M1, M2, M3 money supply

The M1, M2, and M3 money supplies represent different categories of money in an economy. - **M1** includes cash and coins, plus checking account deposits—essentially, the most liquid forms of money that can be quickly used for transactions. - **M2** expands on M1 by adding savings accounts and small time deposits, which are slightly less liquid but still easily accessible. - **M3** includes M2 plus larger time deposits and institutional money market funds, representing a broader measure of money that’s less immediately accessible. Together, they help understand the total money available in an economy.