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money supply |
Also found in: Dictionary/thesaurus, Financial, Wikipedia, Hutchinson | 0.07 sec. |
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money supply: see money money, term that actually refers to two concepts: the abstract unit of account in terms of which the value of goods, services, and obligations can be compared; and anything that is widely established as a means of payment. ..... Click the link for more information. . money supplyLiquid assets held by individuals and banks. The money supply includes coins, currency, and demand deposits (checking accounts). Some economists consider time and savings deposits to be part of the money supply because such deposits can be managed by governmental action and are nearly as liquid as currency and demand deposits. Other economists believe that deposits in mutual savings banks, savings and loan associations, and credit unions should be counted as part of the money supply. Central banks regulate the money supply to stabilize their national economies. See also monetary policy. |
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The Fed also serves as chief regulatory overseer for the nation's banking system and the "lender of last resort" that can be relied on to bail out other big systems if their own money supplies get too low. Because money supplies are limited and the demand is high, companies must often find innovative ways to supplement their giving programs. Miller, "What's also welcome is this change in policy by the Chinese authorities should encourage Asian central banks to allow their money supplies - and their currencies - to rise. |
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