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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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3mo ago

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Related Questions

What entity controls the money supply in the US?

The Federal Reserve (the FED)


Which of these is primarily responsible for the control of the money supply in the US?

The Federal Reserve


What primarily determines the supply of money in the US economy?

Federal reserve


What important role did the Second Bank of the US play?

it kept the US money supply stable


What is The supply of money in the US economy determined primarily b?

Federal Reserve


What government entity is responsible for monitoring the US money supply?

Federal trade commission


What decades was there both high inflation and rapid money supply growth in the US?

1970s


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About 2-3% of the total money supply exists in physical currency.


If there is high inflation the federal reserve will want to increase the money supply?

One of the two (according to the Keynesian) reason that can create high inflation is attributed to the increased money supply where "too much money chasing too few goods" Therefore, to reduce inflation, the Federal reserve would want to DECREASE the money supply. However, the increase in money supply can create stimulus demand and depreciate the exchange rate of the US Dollars which are considered (although questionable) beneficial to the US economy.


Who controls the supply of money in the us?

The Federal Reserve System, a quasi-governmental body, is the central bank that controls the supply of money and/or currency in circulation. The actual production of currencies is by the Department of the Treasury, which operates the US Mints and the Bureau of Engraving and Printing.


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One reason really... $$$$$ MONEY $$$$$


Who controls the supply of money in the US today?

the federal reserve of course now do the happy dance