Broad Money

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Broad Money

The widest possible definition of money supply. There is no universal agreement as to what constitutes broad money. In general, it includes highly liquid instruments like all physical currency and deposits in checking accounts, but also less liquid deposits like those in savings accounts, certificates of deposit, institutional money market accounts, repurchase agreements and other assets that do not circulate very often. It may also include debt securities with maturities of less than two years, repurchase agreements and other assets.

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