Question

What is money supply discuss the determinant of mony supply?

Answer 1

money supply explains how a given supply of high-powered money (which is also called monetary base or reserve money) leads to multiple expansion in money supply through the working of money multiplier.

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Answer 2

Answer:

Money supply is a stock variable Money supply consists of currency notes and  coins issued by monetary authority. It also includes demand and time deposits created by  commercial banks.

Determinants of Money Supply

1. The Required Reserve Ratio

2. The Level of Bank Reserves

3. Public’s Desire to Hold Currency and Deposits

4. High Powered Money and the Money Multiplier

5. Other Factors

Explanation:

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