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money supply has three components which are; M0,M1 and M2

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The US money supply consists of various components that represent the total amount of money available in the economy. It includes physical currency, such as coins and paper bills, as well as demand deposits held in checking accounts. The Federal Reserve categorizes the money supply into different measures, primarily M1, which includes cash and checking deposits, and M2, which encompasses M1 plus savings accounts, time deposits, and other near-money assets. These components help gauge economic activity and influence monetary policy.


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