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The amount of money in the economy. Measures of money supply usually include cash in circulation and current account deposits in banks, but may also include savings deposits or time-restricted deposits.
The amount of money in an economy at a given moment. There are various ways in which the money supply can be defined. Narrowly defined, the money supply can mean the coins and bank notes in circulation and bank deposits where money can be withdrawn at short notice. A broader definition will also include savings accounts at banks and possibly bonds and shares.
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|Noun||1.||money supply - the total stock of money in the economy; currency held by the public plus money in accounts in banks|
M1 - a measure of the money supply; includes currency in circulation plus demand deposits or checking account balances
M2 - a measure of the money supply; M1 plus net time deposits (other than large certificates of deposit)
M3 - a measure of the money supply; M2 plus deposits at institutions that are not banks (such as savings and loan associations)
money - the most common medium of exchange; functions as legal tender; "we tried to collect the money he owed us"