- Econ.the sum of demand or checking-account deposits and currency in circulation.[1875-80]
* * *Liquid assets held by individuals and banks.The money supply includes coins, currency, and demand deposits (checking accounts). Some economists consider time and savings deposits to be part of the money supply because such deposits can be managed by governmental action and are nearly as liquid as currency and demand deposits. Other economists believe that deposits in mutual savings banks, savings and loan associations, and credit unions should be counted as part of the money supply. Central banks regulate the money supply to stabilize their national economies. See also monetary policy.
* * *the liquid assets held by individuals and banks. The money supply includes coin, currency, and demand deposits (checking accounts). Some economists consider time and savings deposits to be part of the money supply because such deposits can be managed by governmental action and are involved in aggregate economic activity. These deposits are nearly as liquid as currency and demand deposits. Other economists believe that deposits in mutual savings banks, savings and loan associations, and credit unions should be counted as part of the money supply.The Federal Reserve Board in the United States and the Bank of England in the United Kingdom regulate the money supply to stabilize their respective economies. The Federal Reserve Board, for example, can buy or sell government securities, thereby expanding or contracting the money supply (see monetary policy.
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Look at other dictionaries:
money supply — money sup.ply n [singular] technical all the money that exists in a country s economic system at a particular time ▪ his policy of controlling the money supply and cutting public spending … Dictionary of contemporary English
money supply — n. All money in the economy at a given time. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary
money supply — ► NOUN ▪ the total amount of money in circulation or in existence in a country … English terms dictionary
Money supply — Finance Financial markets Bond market … Wikipedia
money supply — The amount of money in the economy, consisting primarily of currency in circulation plus deposits in banks: M 1 U.S. money supply consisting of currency held by the public, traveler s checks, checking account funds, NOW and super NOW accounts,… … Financial and business terms
Money supply — M1 A: Currency plus demand deposits M1 B: M1 A plus other checkable deposits. The New York Times Financial Glossary M2: M1 B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits. The New York Times… … Financial and business terms
money supply — monetary stock The quantity of money issued by a country s monetary authorities (usually the central bank). If the demand for money is stable, the widely accepted quantity theory of money implies that increases in the money supply will lead… … Big dictionary of business and management
money supply — noun the total stock of money in the economy; currency held by the public plus money in accounts in banks • Hypernyms: ↑funds, ↑finances, ↑monetary resource, ↑cash in hand, ↑pecuniary resource • Hyponyms: ↑M1, ↑M2, ↑ … Useful english dictionary
money supply — / mʌni səˌplaɪ/ noun the amount of money which exists in a country COMMENT: Money supply is believed by some to be at the centre of control of a country’s economy. If money supply is tight (i.e. the government restricts the issue of new notes and … Dictionary of banking and finance
money supply — N UNCOUNT: usu the N The money supply is the total amount of money in a country s economy at any one time. They believed that controlling the money supply would reduce inflation … English dictionary