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M1 Money Supply: Overview and How to Calculate

By Kristi WaterworthUpdated Oct 3, 2025 at 9:49 PM | Fact-checked by Frank Bass

Key Points

  • M1 money supply includes cash and highly liquid deposits, reflecting liquid assets in circulation.
  • M1 is continuously tracked by the Federal Reserve, providing clear data without the need for personal calculation.
  • Investors monitor M1 trends to assess consumer liquidity and potential economic activity, shaping investment strategies.

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