Money supply




The term "money supply" commonly denotes the total, safe, financial assets that households and businesses can use to make payments or to hold as short-term investment. The money supply is measured using the so-called "monetary aggregates", defined in accordance to their respective level of liquidity: In the United States, for example, M0 for currency in circulation; M1 for M0 plus transaction deposits at depository institutions, such as drawing accounts at banks; M2 for M1 plus savings deposits, small-denomination time deposits, and retail money-market mutual fund shares.

The money supply is understood to increase through activities by government authorities,note by the central bank of the nation,note and by commercial banks.

Comments

Popular posts from this blog

Blockers, absorbers, and windows

Visibility

Subtypes