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Are stocks part of the money supply?

Updated: 8/17/2019
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13y ago

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Yes, stocks are part of the money supply.

Because stocks are more liquid than fixed deposits of money in the bank.

Large investors can liquidate large values of their stocks in seconds using their home computers and the internet.

To liquidate a fix deposit such as a GIC (guaranteed investment certificate) we have to go to the bank and have it done through a banking representative.

Lawrence Rodrigues

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13y ago
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Q: Are stocks part of the money supply?
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