clarinews@clarinet.com (02/09/90)
NEW YORK (UPI) -- The narrow definition of the nation's basic money supply known as M1 rose $2.7 billion in the latest reporting week, while the broader aggregates M2 and M3 also grew, the Federal Reserve Board said Thursday. M2 gained $8.5 billion and M3 rose $5.3 billion. M1, which is made up of cash, checking accounts and NOW accounts -- money that is available for immediate spending -- rose to a seasonally adjusted average of $796.9 billion in the week ended Jan. 29 from a revised $794.2 billion the week before. For the latest 13 weeks, M1 averaged $793.8 billion, a 6.0 percent rate of increase from the previous 13 weeks, the Fed reported. The broader measure of money, M2, averaged an estimated $3,233.9 billion in the latest week, up from a revised $3,225.4 billion. M2 includes M1, plus passbook savings, small time deposits, including money market deposit accounts, consumer money market mutual funds and certain other short-term assets. M3, which includes M2 plus large time deposits, repurchase agreements longer than one day at banks and thrifts, and institutional money market funds, averaged $4,049.4 billion in the latest week, up from a revised $4,044.1 billion, the Fed said.