<P> This continuum corresponds to the way that different types of money are more or less controlled by monetary policy . Narrow measures include those more directly affected and controlled by monetary policy, whereas broader measures are less closely related to monetary - policy actions . It is a matter of perennial debate as to whether narrower or broader versions of the money supply have a more predictable link to nominal GDP . </P> <P> The different types of money are typically classified as "M" s . The "M" s usually range from M0 (narrowest) to M3 (broadest) but which "M" s are actually focused on in policy formulation depends on the country's central bank . The typical layout for each of the "M" s is as follows: </P> <Table> <Tr> <Th> Type of money </Th> <Th> M0 </Th> <Th> MB </Th> <Th> M1 </Th> <Th> M2 </Th> <Th> M3 </Th> <Th> MZM </Th> </Tr> <Tr> <Td> Notes and coins in circulation (outside Federal Reserve Banks and the vaults of depository institutions) (currency) </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> </Tr> <Tr> <Td> Notes and coins in bank vaults (Vault Cash) </Td> <Td> </Td> <Td> ✓ </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> </Td> </Tr> <Tr> <Td> Federal Reserve Bank credit (required reserves and excess reserves not physically present in banks) </Td> <Td> </Td> <Td> ✓ </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> </Td> </Tr> <Tr> <Td> Traveler's checks of non-bank issuers </Td> <Td> </Td> <Td> </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> </Tr> <Tr> <Td> Demand deposits </Td> <Td> </Td> <Td> </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> </Tr> <Tr> <Td> Other checkable deposits (OCDs), which consist primarily of Negotiable Order of Withdrawal (NOW) accounts at depository institutions and credit union share draft accounts . </Td> <Td> </Td> <Td> </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> </Tr> <Tr> <Td> Savings deposits </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> ✓ </Td> </Tr> <Tr> <Td> Time deposits less than $100,000 and money - market deposit accounts for individuals </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> ✓ </Td> <Td> ✓ </Td> <Td> </Td> </Tr> <Tr> <Td> Large time deposits, institutional money market funds, short - term repurchase and other larger liquid assets </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> ✓ </Td> <Td> </Td> </Tr> <Tr> <Td> All money market funds </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> </Td> <Td> ✓ </Td> </Tr> </Table> <Tr> <Th> Type of money </Th> <Th> M0 </Th> <Th> MB </Th> <Th> M1 </Th> <Th> M2 </Th> <Th> M3 </Th> <Th> MZM </Th> </Tr>

M-2 is a narrower definition of the money supply and excludes savings accounts in commercial banks