1. M1 is the most liquid form of money, including currency, demand deposits, and other liquid assets that can be easily converted into cash.
2. M2 includes M1 plus savings deposits, time deposits of less than $100,000, and retail money market mutual funds.
3. M3 includes M1, M2, large time deposits, institutional money market mutual funds, short-term (less than one year) Treasury securities, and overnight RPs (repurchase agreements).