Investor Glossary-money supplyInvestor Glossary-money supplyInvestor Glossary-money supplyInvestor Glossary-money supplyInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Money Supply

The HTML to link to this page
 

In macroeconomics, the money supply is the amount of money in use in an economy. There are multiple measures of the money supply, depending upon how money is defined. Some common measures of the money supply in the US are called M0, M1, M2, and M3. For example, M0, the narrowest definition of the US money supply, is the sum of all notes and coins in circulation. The money supply is important because of its direct relationship to inflation. Since the control of inflation is a typical objective of monetary policy, influencing the size of the money supply is an important central bank policy lever. The Federal Reserve influences the US money supply through the open market operations of the Federal Open Market Committee (FOMC) in New York.



Rate this money supply definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: diluted share, real GDP, ex-dividend, FICO score, option premium, Zero Cost Collar, wholly-owned subsidiary, required rate of return, FTSE, LIBOR, labor relations, 144a, EBITDA, irrevocable trust, balance sheet, risk management, 401a, 1035 exchange, annual return, retained earnings, debt service coverage, 1031 exchange, Key Rate Duration, dividends payable, implied volatility, class C shares, quality assurance, in escrow, deferred revenue, minority interest, ex-dividend date, reverse mortgage, per diem, APR, liquidity ratio, current ratio, margin rate, cancelled check, open position, stock market close, VIX, inflation, stock split, command economy, limit order, phantom income, covered put, average price per share, deferred tax


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use