Money Supply

Chart of the Week for June 6 - June 12, 2003

The total amount of money in circulation (money supply) affects the prices of finished goods and inflation. When too much money circulates in relation to available goods and services, interest rates are driven down, and prices and inflation rise. Conversely, when too little money circulates, interest rates tend to increase, prices drop, and overall productivity slows. The Federal Reserve Board (Fed) manages the money supply by controlling the reserve requirements that banks must maintain, setting the borrowing rate at which banks can borrow from the Fed, and by the buying or selling of securities in the open market.

The money supply is measured at three levels, M1, M2, and M3. M1 money supply consists of currency, travelers checks, demand deposits, and other checkable deposits. M2 money supply includes the M1 supply plus household savings deposits, retail money market account balances, and small time deposits (under $100,000). Finally, the M3 money supply consists of the M2 supply plus large time deposits, institutional money market account balances, bank repurchase agreements, and Eurodollars.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

Please read both the current applicable prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks and performance information. Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested. Investors should carefully consider the Fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information about the investment company. The Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a current prospectus, contact ICMA-RC Services, LLC.

The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.