Measures of Money Supply

Measures of Money Supply-What are Money Supply Measures-What are the Main Measures of a Money Supply

The US Federal Reserve Bank keeps track of the total amount of money in circulation in a number of different ways (the “Fed”). M1 doesn’t count any assets other than cash. Larger numbers after “M” mean that the measure of money includes fewer liquid assets. Unless stated otherwise, we will use M1 to refer to

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Components of Money Supply

Components of Money Supply-What are Money Supply Components-What are the Main Components of a Money Supply

The term “money supply” refers to the total amount of cash (currency and deposit money) in an economy at a certain time. The amount of cash in circulation and the size of demand deposits are the two most common ways to measure “money.” When talking about an economy, “money supply” can also mean all of

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