BANKING & FINANCE - May 8, 1992

Money Supply Falls: The Federal Reserve reported that the measure of the nation’s basic money supply, known as M2, fell in the week ended April 27 to a seasonally adjusted $3,461.5 billion from $3,471.2 billion the previous week. An even broader measure, M3, fell to a seasonally adjusted $4,178.3 billion from $4,178.4 billion. The narrowest measure, M1, fell to a seasonally adjusted $941.6 billion from $945.9 billion. M1 includes cash in circulation, deposits in checking accounts and non-bank travelers 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 in minimum denominations of $100,000.