BANKING & FINANCE - Feb. 4, 1994

Money Supply Declines: The Federal Reserve Board reported that the measure of the nation’s money supply known as M2 fell $1 billion in the week ended Jan. 24 to a seasonally adjusted $3,574.4 billion from a revised $3,575.4 billion the week before. A broader measure, M3, fell $5.3 billion to $4,231.7 billion from $4,237.0 billion. The narrowest measure of the money supply, M1, rose $3.4 billion to $1,136.0 billion from $1,132.6 billion. M1 includes cash in circulation, deposits in checking accounts and non-bank traveler’s checks. M2 is M1 plus accounts such as savings deposits and money market mutual funds. M3 is M2 plus less-liquid accounts, such as certificates of deposit.