Financial Aggregates Measured by RBA

• Money Base

  Consists of all currency in circulation and all RBA bank deposits. The measure of most liquid financial assets - can be used immediately by financial institutions to expand lending activities
• M3

  Consists of money base and all bank deposits - RBA's measure of money supply
• Broad Money

  M3 plus deposits in non-financial intermediaries minus holdings of bank deposits
• While broad money provides a more accurate measure of the total money supply, it takes longer for the RBA to compile relevant statistics, so it continues to use M3 as its official measure of the money supply
• Credit

  A system that allows payments for purchases to be deferred. However, while credit can act as a medium of exchange, it does not serve as a store of value - it is not used as a measure of the money supply
• Currency

  Money supply is the total amount of funds in the economy that can be used as a medium of exchange, a measure of value, a store a value and a deferred payment