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Glossary Term: MONEY SUPPLY

Definition(s) for MONEY SUPPLY:


1. ) The stock of money in the economy, consisting of currency in circulation and deposits in checking and savings accounts. M1, M2 and M3 represent money and near-money.

2. ) Total stock of money in the economy, consisting primarily of currency in circulation and deposits in savings and checking accounts. Too much money in relation to the output of goods tends to push interest rates down and push inflation up; too little money

3. ) The total amount of money available for transactions and investment in the economy. Also known as the money stock. The Federal Reserve Board uses various statistical measures to measure the various forms of money that make up the money supply. See also M1, M2, M3, Money Stock.

4. ) Total quantity of money available for transactions and investment; measure of the U.S. stock include M1, M2 and M3. (Also referred to as the money stock or simply money.)



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