Money supply refers to the total amount of money available in an economy at a given time. It includes all physical currency, demand deposits (checking accounts), savings accounts, and other liquid assets held by individuals and institutions. The money supply is closely monitored by central banks, such as the Federal Reserve in the United States, as changes in the money supply can have a significant impact on inflation, interest rates, and overall economic growth. There are different measures of the money supply, including M1, M2, and M3, which include different types of money and have different levels of liquidity.
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