3,882
edits
Liquidity: Difference between revisions
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===M2=== | ===M2=== | ||
{| class="wikitable" | |||
|'''Item''' | |||
|'''Amount as of 2/27/2023'''<ref>https://www.federalreserve.gov/releases/h6/current/default.htm</ref> | |||
|- | |||
|Currency | |||
|2,211.70 | |||
|- | |||
|Demand deposits | |||
|5,066.50 | |||
|- | |||
|Other liquid deposits | |||
|12,407.60 | |||
|- | |||
|Small- denomination time deposits | |||
|361.4 | |||
|- | |||
|Retail money market funds | |||
|1,160.20 | |||
|- | |||
|'''M2''' | |||
|'''21,207.40''' | |||
|} | |||
M2 is a measure of the U.S. money stock that includes M1 (currency and coins held by the non-bank public, checkable deposits, and travelers' checks) plus savings deposits (including money market deposit accounts), small time deposits under $100,000, and shares in retail money market mutual funds. <ref>https://www.stlouisfed.org/financial-crisis/data/m2-monetary-aggregate#:~:text=M2%20is%20a%20measure%20of,retail%20money%20market%20mutual%20funds.</ref>\ | M2 is a measure of the U.S. money stock that includes M1 (currency and coins held by the non-bank public, checkable deposits, and travelers' checks) plus savings deposits (including money market deposit accounts), small time deposits under $100,000, and shares in retail money market mutual funds. <ref>https://www.stlouisfed.org/financial-crisis/data/m2-monetary-aggregate#:~:text=M2%20is%20a%20measure%20of,retail%20money%20market%20mutual%20funds.</ref>\ | ||
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Deposits are a critical source of funding for banks, which use the money to make loans and investments. By accepting deposits, banks are able to create credit and provide funding to borrowers, which helps to stimulate economic activity. | Deposits are a critical source of funding for banks, which use the money to make loans and investments. By accepting deposits, banks are able to create credit and provide funding to borrowers, which helps to stimulate economic activity. | ||
* Deposits have decline 485 billion since April 2022, a 2.67% decline. <ref>https://fred.stlouisfed.org/series/DPSACBW027SBOG</ref> | * Deposits have decline 485 billion since April 2022, currently stands at a level of 17.6 trillions, it has been 2.67% decline. <ref>https://fred.stlouisfed.org/series/DPSACBW027SBOG</ref> | ||
* Y/Y growth is -2% | * Y/Y growth is -2% as of february | ||
* Reasons that could help explain this decline are: | * Reasons that could help explain this decline are: | ||