Broad Liquidity

AAA

DEFINITION of 'Broad Liquidity'

A category of the money supply which includes: all funds in M3, individual holdings in accounts, savings bonds, T-bills with maturity of less than one year, commercial papers, and banker's acceptances.

INVESTOPEDIA EXPLAINS 'Broad Liquidity'

This is the widest measure of money supply. Broad liquidity can be generalized as the total amount of money issued by a central bank plus any new money created by commercial banks through lending. This is one of the economic measures that policy-makers and investors use to track and forecast inflation.

RELATED TERMS
  1. M3

    A measure of money supply that includes M2 as well as large time ...
  2. Economics

    A social science that studies how individuals, governments, firms ...
  3. Central Bank

    The entity responsible for overseeing the monetary system for ...
  4. Inflation

    The rate at which the general level of prices for goods and services ...
  5. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  6. Money Zero Maturity - MZM

    A measure of the liquid money supply within an economy. MZM represents ...
Related Articles
  1. How The U.S. Government Formulates Monetary ...
    Personal Finance

    How The U.S. Government Formulates Monetary ...

  2. Interest Rates And Your Bond Investments
    Investing Basics

    Interest Rates And Your Bond Investments

  3. An Investor's Guide To Bank Stress-Testing
    Investing Basics

    An Investor's Guide To Bank Stress-Testing

  4. What is the difference between a state ...
    Credit & Loans

    What is the difference between a state ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center