when making central bank decisions federal economists will usually consider m1 m2 and m3 implications 
in the u s the fed primarily uses m1 and m2 statistics for policy considerations the fed stopped reporting m3 in 2006 2near money is considered part of the m2 money supply 3money vs near moneyin all assessments of near money it can be important to make the distinction between money and near money money includes cash in hand or cash in the bank that can be obtained on demand for use as a medium of transactional exchange near money requires some time to cash conversion individuals and businesses need to have cash money available to meet immediate obligations in central bank analysis m1 is primarily composed of real money near money is not cash but rather assets that can be easily converted to cash the realm of near money assets will vary depending on the type of analysis the nearness of near moneys will also be a factor for consideration when making all types of financial decisions 