M1 Money Supply

Economy Term

M1 money supply refers to the narrowest definition of money supply, which includes the most liquid forms of money such as currency, demand deposits, and other checkable deposits. It reflects the amount of money in circulation that can be easily accessed and used for transactions.

In the industry, M1 is used as an important indicator of economic activity and inflation. It is used by policymakers to monitor the money supply, control inflation, and manage interest rates. Central banks use M1 as a tool to adjust monetary policy by changing the supply of money in the economy. By increasing or decreasing the money supply, they can influence lending rates and stimulate or cool down economic growth.

M1 is also used by businesses and investors to predict trends in consumer spending and demand. By looking at the level of M1, they can make informed decisions about pricing, production, and investment strategies. Overall, M1 is a key measure of the health and vitality of an economy, as it reflects the level of economic activity and the amount of capital available for investment and growth.




More Glossary Terms Beginning with M
  • M1 Money Supply
    M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) travelers checks of nonbank issuers; (3) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; an
    Economy Term Letter: M
  • M2 Money Supply
    M2 consists of M1 plus (1) savings deposits (including money market deposit accounts); (2) small-denomination time deposits (time deposits in amounts of less than $100,000), less individual retirement account (IRA) and Keogh balances at depository institutions; and (3) balances in retail money market mutual funds, less IRA and Keogh balances at money market mutual funds.
    Economy Term Letter: M
  • m3
    Cubic metre. A measure of volume equal to approximately 1,130 square feet (3/8-inch basis).
    Manufacturing Term Letter: M
  • MACD
    MACD is the difference between a fast Exponential Moving Average (EMA) and a slow Exponential Moving Average and the fast Moving Average is continually converging towards or diverging away from the slow Moving Average. Signal line is a the Exponential Moving Average of the MACD, plotted to identify changes in trends and market sentiment. The MACD study can be used to identify buy and sell signals.
    Technical Indicator Letter: M
  • MACT
    Maximum Achievable Control Tech- nology. Regulations being introduced in the US to limit the discharge of hazard- ous air pollutants.
    Manufacturing Term Letter: M
  • Mammography
    An X-ray of the breast with the breast in a device that compresses and flattens it.
    Health Care Term Letter: M
  • Managed Credit Card Receivables
    Refers to credit card receivables on the Firms Consolidated Balance Sheets plus credit card receivables that have been securitized and removed from the Firms Consolidated Balance Sheets.
    Financial Term Letter: M
  • Managed Receivables
    Total receivable amounts on which the company continues to perform billing and collection activities, including receivables that have been sold with and without credit recourse and are no longer reported on their Statement of Financial Position.
    Financial Term Letter: M
  • Manufacturers Manufacturing
    Establishments in the manufacturing sector are often described as plants, factories, or mills, and characteristically use power-driven machines and material-handling equipment. Manufacturing establishments may process materials, or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing.
    Manufacturing Term Letter: M
  • Mark To Market
    The valuation at fair value, using prevailing market prices, at a specified point in time.
    Financial Term Letter: M
  • Mark To Market Exposure
    A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the mark-to-market value is positive, it indicates the counterparty owes the Firm and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, the Firm owes the counterparty; in this situation, the Firm does not have repayment risk.
    Financial Term Letter: M
  • Marker
    Indicator of the presence of a specific kind of tumor, identifiable by means of specific laboratory tests.
    Health Care Term Letter: M