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Money supply |
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Money supplyThere 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 supplyThe 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 supplyM1-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 MatchesRelative supplyRelative supplyThe ratio of the supply of one good to the supply of another, most useful in representing general equilibrium in a two-good economy, where relative price adjusts to equate relative supply and relative demand. Supply curveSupply curveThe 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. SupplySupply1. The act of offering a product for sale. 2. The quantity offered for sale. 3. The quantities offered for sale at various prices; the supply curve. Excess supplyExcess supplySupply minus demand. Thus a country's supply of exports of a homogeneous good is its excess supply of that good. Supply side economicsSupply side economicsA theory of economics that reductions in tax rates will stimulate investment and in turn will benefit the entire society. Further SuggestionsSupply shockAggregate supply Floating supply Raw material supply agreement Cross-border supply Supply elasticity Supply price Supply function Thirty day visible supply Mode of supply Visible supply |
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