Money Supply (Noun)
Meaning
The total stock of money in the economy; currency held by the public plus money in accounts in banks.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The government's monetary policy focuses on controlling the money supply to prevent inflation.
- A decrease in the money supply can lead to higher interest rates and reduced economic activity.
- The central bank's goal is to maintain a stable money supply that supports economic growth.
- When the economy is growing rapidly, the central bank may increase the money supply to prevent a shortage of funds.
- The economist researched the impact of changes in the money supply on the overall performance of the economy.