/biz/ - Business & Finance

/biz/ financial knowledge peaked at posting pink faces.

There are more and more dollars on a market in form of savings, money market funds etc. But dollar is hardly efected.
Printed dollar is same as one on a bank account, so how can it both multiply and keep value?

M1 represents all of the currency in the M0 money supply, plus all of the money held in checking accounts and other checkable accounts, as well as all of the money in travelers' checks. In June 2013, the M1 money supply for U.S. dollars equaled about $2.5 trillion [source: Federal Reserve].

M2 is the M1 supply, plus all of the money held in money market funds, savings accounts and CDs under $100,000. In June 2013, the M2 money supply was about $10.5 trillion

$8 trillion more.
$3.5 trillion is Money Market Funds.
$4.5 trillion are Saving acounts and certificates of deposit.