Money Supply

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  • The stock of money (money measured at a particular period of time) rather than a flow, which can be estimated as a medium of exchange or a medium of exchange and store of value.

    The narrower definition of the supply of money is generally referred to as M1 because it is highly liquid and generally excludes the form of money that is characterized as a store of value. When the supply of money is aggregated as M1, it is computed to include currency (coins and paper money) in the hands of the public and all checkable deposits in depository institutions—including negotiable order of withdrawal (NOW) and automatic transfer services (ATS). Money held as vault cash is discounted to avoid double counting.

    A larger measure of the money ...

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