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What is money supply??

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What is money supply??
  • 2 answers

Nikita Chauhan 5 years, 3 months ago

Money supply refers to total volume of money held by public at a particular point of time in an economy.

Meghna Thapar 5 years, 3 months ago

The total stock of money circulating in an economy is the money supply. The circulating money involves the currency, printed notes, money in the deposit accounts and in the form of other liquid assets. 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. Since the economy does not influence the quantity of money, money supply is considered perfectly vertical (on models).

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