Places to go on vacation

Money supply. The amount of money which exists in an economy at any given time. There is no single definition of exactly what constitutes the money supply. The essence of money is that it should be generally acceptable as a means of payment, but this characteristic does not permit a unique definition of the actual money supply. Since notes and coin (nominally claims against the government, but in fact simply tokens) are an accepted means of payment, they are clearly part of the money supply. In addition, current accounts at banks are, through the use of cheques, also used to settle debts, and so are part of the money supply. These two taken together give what can be thought of as the most narrow definition of the money supply. This narrow’ definition of the money supply is often referred to as Ml’. deposit accounts are, strictly speaking, not capable of being used as money one cannot draw a cheque on a deposit account and use it to settle a debt. Nevertheless, despite the formal rules, it is possible to meet a cheque drawn on one’s current account by transferring the appropriate sum from a deposit account virtually at will, and hence a broader definition of the supply of money would also include deposit accounts. This definition is known as M2′; it has ceased to be used in

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