M3 is the broadest measure of the money supply. It includes all of M1 and M2, plus the assets and liabilities of financial institutions, including long-term deposits, which can't be easily converted into spendable forms. The Federal Reserve reports the financial details of the money supply every week. The M3 figure, the most inclusive, is always the largest and the M1 the smallest. In addition, a summary of Reserve Aggregates appears every two weeks, providing additional financial statistics.
Seasonal adjustments reflect the varying flow of money into and out of bank accounts.
In the spring, for instance, tax refunds tend to swell checking accounts that were depleted in the winter as consumers paid off holiday bills. Because people increasingly keep their cash in mutual fund money market accounts, which aren't included in M2, the Fed found that the figure wasn't a reliable indicator of economic growth. Inc. All Rights Reserved. Many of the features change from time to time and may not be available at all times. It is for marketing and informational purposes only and is not in real-time.