How is M1 different from M3?

M1 and M3 are measures of the money supply used in economics. M1 includes the most liquid forms of money, such as cash, checking accounts, and travelers' checks, reflecting money that can be quickly used for transactions. In contrast, M3 encompasses a broader range of money, including M1 plus savings accounts, time deposits, and other near-money assets, providing a more comprehensive view of the total money supply in the economy. Thus, the key difference lies in their liquidity and the types of assets they include.