BANKING & FINANCE - May 20, 1994

Money Supply Rises: The Federal Reserve Board said the measure of the nation’s money supply known as M2 rose in the week ended May 9 to to a seasonally adjusted $3,587.5 billion, $6.7 billion from from a revised $3,580.8 billion the week before. A broader measure, M3, rose $2.1 billion to $4,213.0 billion from $4,210.9 billion. The narrowest measure, M1, rose $3.6 billion to $1,141.9 billion from $1,138.3 billion. M1 includes cash in circulation, deposits in checking accounts and non-bank traveler’s checks. M2 is M1 plus accounts such as savings deposits and money market mutual funds. M3 is M2 plus less-liquid accounts, such as certificates of deposit in minimum denominations of $100,000.