Money Supply Calculator
Money Supply Calculator
Component |
Description |
Currency in Circulation |
The total amount of physical currency (coins and paper money) in the economy. |
Demand Deposits |
The total amount of money held in demand deposit accounts (checking accounts). |
Money Supply |
The total amount of money available in the economy, including currency and demand deposits. |
Formula |
Money Supply = Currency in Circulation + Demand Deposits |
Purpose |
Used to measure the total amount of money available in the economy, influencing economic activity and monetary policy. |