What is money supply?

Money supply refers to the total amount of money in circulation within an economy at a specific point in time. It includes physical currency such as coins and banknotes, as well as demand deposits held in banks and other financial institutions. Money supply is a crucial economic indicator as it influences the overall level of prices, inflation rates, and the health of the economy. Central banks, such as the Federal Reserve in the United States, closely monitor and manage the money supply through various tools and policies to maintain stability and achieve their economic objectives.

This mind map was published on 19 September 2023 and has been viewed 53 times.