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narrow money

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Financial Dictionary

Narrow Money

Another term for M1, the category of the money supply that includes all physical money like coins and currency. It also includes demand deposits, which include checking accounts and NOW accounts.

Investopedia Commentary

The name comes from the fact that M1 is the narrowest idea of money.

Related Links

What Is Money?

See also: Checking Account, M1, M2, M3, Monetary Policy, Money Supply, NOW Account

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