M3

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M3

Measure of the U.S. money stock that consists of M2, time deposits of $100,000 or more at all depository institutions, term repurchase agreements in amounts of $100,000 or more, certain term Eurodollars and balances in money market mutual funds restricted to institutional investor.

M3

A measure of money supply used by the various central banks. In the Federal Reserve System, M3 includes all physical currency and deposits in checking accounts, deposits in savings accounts, certificates of deposit, institutional money market accounts, repurchase agreements, and other large liquid assets that do not circulate very often. The European Central Bank defines M3 as the aggregation of currency in circulation, overnight deposits, all money market accounts, debt securities with maturities of up to two years, and repurchase agreements. M3 includes money that circulates very little or not at all and, therefore, the Federal Reserve no longer calculates M3 when determining the money supply. However, it is useful to some economists seeking to determine the entire amount of money in a given economy. See also: M0, M1, M2, M4

M3

A very broad measure of the domestic money supply that includes M2 items plus any large time deposits and money market fund balances held by institutions.
References in periodicals archive ?
2) According to Treasury's Acting Assistant Secretary for Tax Policy, Greg Jenner, "Schedule M-3 will enable the IRS to identify quickly those differences that warrant additional scrutiny.
Another goal of Schedule M-3 is consistent reporting among taxpayers from year to year.
Schedule M-3 is replacing Schedule M-1 because of the ever-increasing expansion of the book-tax income gap, a decline in the corporate tax base, an increasing compliance burden on an already overwhelmed IRS and general dissatisfaction with Schedule M-1.
corporation filing Form 1120 must file Schedule M-3 if it has at least $10 million of assets on Schedule L, Balance Sheets per Books.
The FAQs are arranged and keyed to the line items and sections of the Schedule M-3 Instructions.
Stakeholder groups working with the IRS to provide the Schedule M-3 FAQ service include:
Questions about Schedule M-3 can be submitted to TEI at advocacy@tei.
Beginning in 2005, he said, the IRS will require taxpayers that are filing their second Schedule M-3 to complete columns (a) and (d) of Parts II and III of the schedule.
Further, compiling the specific information required by the proposed Schedule M-3 (together with a proposed effective date tied to tax years ending on or after December 31, 2004) will impose a substantial burden on taxpayers that must make substantial adjustments to their accounting and information technology systems to comply.
These problems are particularly acute with respect to the entries that must be made in Schedule M-3, Parts III and IV, column (A).
References to Schedule L note that the balance sheet numbers should correspond to the taxpayer's financial statement amounts used for the Schedule M-3 not the tax-basis balance sheet amounts, and presumably include full consolidation accounting rather than a combination approach to aggregating the numbers.
Proposed Schedule M-3 has the potential to advance these goals, but its design and implementation must take into account a number of issues before it will be effective and before it should be adopted.