BANKING AFFAIRS

Detailed explanation-1: -What Is Money Zero Maturity? Money of zero maturity (MZM), which represents all money that is readily available, is a measure of the liquid money supply within an economy. It includes money as cash in hand or money in a checking account, for example.

Detailed explanation-2: -The money of zero maturity measurement is a good indicator of the monetary base of the economy-how much money is actually floating around in the economy. In fact, it is one of the most popular monetary measurements since the Federal Reserve stopped tracking the M3 money supply numbers on March 23, 2006.

Detailed explanation-3: -MZM consists of M1 plus all money market accounts, including institutional money market funds. MZM represents all assets that are redeemable at par on demand and is designed to estimate the supply of readily circulating liquid money in the economy.

Detailed explanation-4: -MO is the total amount of paper money and coins in circulation, plus the current amount of central bank reserves. M1 is the most frequently reported headline number. It is MO plus money held in regular savings accounts and in travelers’ checks.

Detailed explanation-5: -Narrow money is also known as M1 and M2. Broad money means M3 and M4. The liquidity of these grades is decreasing. M1 is the most liquid and makes transactions the easiest, while M4 is the least liquid.