John D asked in Social ScienceEconomics · 1 decade ago

Can someone please explain the economic term M3? In easy english?

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  • meg
    Lv 7
    1 decade ago
    Best Answer

    M stands for Money and the 1...3 etc identify the level of liquidity, being 1,the most liquid, bills and coins, then 2,3 etc add different types of deposits or monetary instruments which are less and less liquid.

    It can't really be explained in detail in easy English. You have to know about the various financial instruments to understand. A good, or as good as there is, explanation can be found at

    http://www.theshortrun.com/data/Financial/aggregat...

  • 4 years ago

    Pure socialism will not benefit us economically, but restrictions will. In pure capitalism, monopolies arise, and smaller companies are quickly bought out. When there's no more competition, the large companies make the price as high as possible. In order to balance this out, government (or some administrative council) places price caps on necessities such as food and water. These are socialist in nature, but that doesn't make the entire economy socialist. This council also restricts the ability of large companies to form monopolies, allowing smaller businesses to flourish. You could say that a government enacting socialist policies actually creates a freer market. But at the point where the government buys a company to save it from debt is stepping into some dark water. On one hand, the company is responsible for its own money (capitalism), but you also depend on that company for something (i.e. insurance) So all in all, a mixed economy is best. In my opinion, the market should be as free as possible while restricting monopolies and placing price caps on necessities. Then there's the social aspect, whether law enforcement/emergency response should be privatized or state-funded. As long as someone pays for it and it exists, I'm fine with any system. So that's my long-winded opinion. Thanks for two points :)

  • 5 years ago

    M1: The cash in circulation and the money we get through pay checks.

    M2: savings

    M3: is supercurrency and supercurrency is the before-and-after of a stock going public. This is where the very rich people are located, most people are at M1 to get to them you simply buy stock at book and and than sell at market convert to your checking account you now have M1.

  • Anonymous
    1 decade ago

    Money supply. It is the amount of money in banks and other non bank entity that can be used to purchase goods and services.

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  • 1 decade ago

    u should check out this website. it tells you what it is.

    http://en.wikipedia.org/wiki/Messier_3

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