M1

A measure of the money supply used by economists to help determine the amount of money in circulation. M1 is basically money that can be used for spending and includes all currency such as coins and notes held by the public and other money forms which are easily converted into cash such as travellers cheques from non-banking institutions along with sterling deposits that can be withdrawn on demand or have been deposited overnight in banks and building societies. Bank reserves are not included in M1.

This definition is for general information purposes only