Narrow money is a category of money supply that includes all physical money like coins
and currency along with demand deposits and other liquid assets held by the central bank.
In the United States, narrow money is classified as M1 (M0 + demand accounts).
Broad money is the most inclusive method of calculating a given country’s money
supply. The money supply is the totality of assets that households and businesses can use
to make payments or to hold as short-term investments, such as currency, funds in bank
accounts and anything of value resembling money.