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[9] M2 is a key economic indicator used to forecast inflation.[10]
M3: M2 + large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. This is the broadest measure of money commonly used and is used by economists to estimate the entire supply of money within an economy...
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This is the broadest measure of money commonly used and is used by economists to estimate the entire supply of money within an economy.[11]
[edit] Fractional-reserve banking
Main article: Fractional-reserve banking
The different forms of money in government money supply statistics arise from the practice of fractional-reserve banking...
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