how money are supplied
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Money is supplied by bank
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Money supply means the total amount of money in an economy. The effective money supply consists mostly of currency and demand deposits.
Currency includes all coins and paper money issued by the government and the banks. Bank deposits (payable on demand
) are regarded part of money supply and they constitute about 75 to 80 per cent of the total money supply in the US. Some economists also include near money, or such liquid assets as savings, deposits and government bills in the money supply. The total supply of money is determined by banks, the Federal Reserve, businessmen, the government and consumers.
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