M1

M1 definition - business

M1

The most restrictive measure of the domestic money supply, which incorporates only money that is ordinarily used for spending on goods and services. M1 includes currency, checking account balances (including NOW accounts and credit union share draft accounts), and traveler's checks. Financial observers closely watch this money measure that is a key indicator of past and future Federal Reserve actions.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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