What is meant by supply of money?
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The supply of money means the total stock of money(paper notes, coins and demand deposits of bank) in circulation which is held by the public at any particular point of time. ... In short, money supply includescurrency held by public and net demand deposits in banks.
The money supply is the amount of M1 in the economy (the effective money). The supply of money is determined by the Central Bank through 'monetary policy; the economy then has to make do with that set amount of money.
The supply of money means the total stock of money(paper notes, coins and demand deposits of bank) in circulation which is held by the public at any particular point of time. ... In short, money supply includescurrency held by public and net demand deposits in banks.
The money supply is the amount of M1 in the economy (the effective money). The supply of money is determined by the Central Bank through 'monetary policy; the economy then has to make do with that set amount of money.
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Supply of money is as follows:
- During a specific period, a national economy is circulated by the amount of domestic currency is defined as money supply.
- Coin, cash and money in savings is included in money supply. Short time investment and payments checking is also included in this.
- In economy, it means total amount of money.
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