The additional less liquid components of M3 didn’t appear to convey more economic information than was already captured by the more liquid components of M2. This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
The M3 classification is the broadest measure of an economy’s money supply. It emphasizes money as a store-of-value more so than as a medium of exchange, hence the inclusion of less-liquid assets in M3. Less-liquid assets would include those that are not easily convertible to cash and therefore not ready to use if needed right away. The money supply, sometimes referred to as the money stock, has many classifications of liquidity.
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MZM does not include money that is not readily available, such as CDs. The cubic meter is the unit of volume in the International System of Units. This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
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Slang Terms & Acronyms containing “m3”
M3 can be thought of as a congregation of all the other classifications of money (M0, M1, and M2) plus all of the less liquid components of the money supply. This could be the only web page dedicated to explaining the meaning of M3 (M3 acronym/abbreviation/slang word). However, the Federal Reserve Bank of St. Louis and some other sources still publish M3 figures for economic data purposes. As of December 10, 2020, M3 for the United States was $18.81 trillion. Since 2006, M3 is no longer tracked by the U.S. central bank, the Federal Reserve. The Fed did not use M3 in its monetary policy decisions even before 2006.
The total money supply includes all of the currency in circulation as well as liquid financial products, such as certificates of deposit (CDs). Because of its shortcomings, M3 has since been eclipsed by money zero maturity (MZM) as a preferred measure of the money supply. MZM is seen as a better measure of the readily available money in the economy and as a clearer illustration of the expansion and contraction of that supply.
Internet & Text Slang Dictionary
Eric Billiet is the Minnesota Department of Education’s (MDE) Expanded Learning Specialist. Included in his duties are administration of the 21st Century Community Learning Centers grant competition process and coordinating grant recipient technical assistance and professional development. Eric has a background in youth civic engagement and consequently is the liaison to the Minnesota Alliance with Youth to facilitate the Minnesota Youth Council’s Student Advisory Committee to MDE. Learning through afterschool is linked to narrowing the achievement gap.
M3 includes all of M2 (and all of M1 and M0) but adds the least liquid components of the money supply that are not in circulation, such as repurchase agreements that do not mature for days or weeks. An alternative name, which allowed a different usage with metric prefixes, was the stère, still sometimes used for dry measure (for instance, meaning of m3 in reference to wood). Another alternative name, no longer widely used, was the kilolitre. M3 was traditionally used by economists to estimate the entire money supply within an economy and by central banks to direct monetary policy in order to control inflation, consumption, growth, and liquidity, over medium and long-term periods.
The Meaning of M3
This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. This equal weighting can be considered a shortcoming of the M3 measurement of the money supply, which is why it is no longer used as a true measurement of the money supply any longer. In order to determine M3, each M3 component is given equal weight during calculation. For example, M2 and large time deposits are treated the same and aggregated without any adjustments.
While this does create a simplified calculation, it assumes that each component of M3 affects the economy the same way, which is not the case in the actual economy. M0 refers to the currency in circulation, such as coins and cash. M1 includes M0, demand deposits, such as checking accounts, traveler’s checks, and currency that is out of circulation but readily available.
What size is 5 M3?
5 cubic meters equal precisely 176 cubic feet.