Money supply


 

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Money supply

There are several formal definitions, but all include the quantity of currency in circulation plus the amount of demand deposits. The money supply, together with the amount of real economic activity in a country, is an important determinant of its price level and its exchange rate.

Money supply

The total amount of money in an economy at a given time. In the UK the main measures of money supply are:M0: Sterling notes and coins in circulation outside the Bank of England including those held in tills of banks and building societies plus banks' operational deposits with the Bank of England. Also known as narrow money.M4: M0 plus all sterling deposits at UK monetary financial institutions held in the M4 private sector. Also known as broad money.

Money supply

M1-A: Currency plus demand deposits M1-B: M1-A plus other checkable deposits. M2: M1-B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits. M3: M-2 plus large time deposits and term repos. L: M-3 plus other liquid assets.



Money supply

Similar Matches

Cross-border supply

Cross-border supply

The provision of an internationally traded service across national borders without requiring physical movement of buyer or seller, as when the service can be provided by long-distance communication. One of four such modes of supply of traded services.


Excess supply

Excess supply

Supply minus demand. Thus a country's supply of exports of a homogeneous good is its excess supply of that good.


Supply curve

Supply curve

The graph of quantity supplied as a function of price, normally upward sloping, straight or curved, and drawn with quantity on the horizontal axis and price on the vertical axis. Supply curves for exports and for foreign exchange usually have the same qualitative properties as supply curves for labor, being potentially backward bending.


Supply price

Supply price

The price at which a given quantity is supplied; the supply curve viewed from the perspective of price as a function of quantity.


Mode of supply

Mode of supply

The method by which suppliers of internationally traded services deliver their service to buyers. The four modes usually identified are: cross-border supply, consumer movement, producer presence, and movement of natural persons.


Further Suggestions

Aggregate supply
Visible supply
Supply shock
Supply function
Floating supply
Supply side economics
Relative supply
Supply
Raw material supply agreement
Thirty day visible supply
Supply elasticity


 
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