What is Broad Money?

Fund of Funds is the symmetry of "narrow money." Narrow currency (M1) plus the sum of time deposits of commercial banks. Because various time deposits can generally be converted into real purchasing power in advance, counting it as currency can more fully reflect the currency circulation and facilitate analysis and control of market financial activities. By analogy, savings deposits, negotiable time deposit certificates, and short-term bonds that can be changed as currency-like quasi-currency can also be included according to their liquidity status. Usually, M2M3 and other codes are used for classification and statistics. Currency in turn decreases in liquidity. Central banks in different countries have different regulations on these classification indicators, and the number of broad currency classification indicators varies in different periods of a country's economic and financial development. ^[1]

Broad money

Broad money: The amount of money in a country's economy, measured by counting money kept by banks and people

Broad money is an economic concept, and

Usually, each country uses only one currency and is issued and controlled by the central bank. There are exceptions, however, where multiple countries can use the same currency. Examples common in EU countries

Broad money and

China's classification of currency levels is M0 = cash in circulation

On May 9, 2019, the central bank's website released the April 2019 financial statistics report. At the end of April, the broad money (M2) balance was 188.47 trillion yuan, an increase of 8.5% year-on-year, and the growth rate was 0.1 percentage points lower than the end of last month and 0.2 percentage points higher than the same period of the previous year. ^[3]