13 Explain
the concept of Money Supply.
Answers
Answer:
The money supply is all the currency and other liquid instruments in a country's economy on the date measured. The money supply roughly includes both cash and deposits that can be used almost as easily as cash. Governments issue paper currency and coin through some combination of their central banks and treasuries.
Explanation:
Money Supply
The money supply is all the currency and other liquid instruments in a country's economy on the date measured. The money supply roughly includes both cash and deposits that can be used almost as easily as cash.Governments issue paper currency and coin through some combination of their central banks and treasuries.In the previous unit, we have discussed the theories related to demand for money. Money plays a crucial role in the smooth functioning of an economy. Money supply is considered as a very important macroeconomic variable responsible for changes in many other significant macroeconomic variables in an economy and is therefore considered as a matter of considerable interest to the economists and policy makers. Economic stability requires that the supply of money at any time should to be maintained at an optimum level.