Management Notes

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Factors Affecting Money Supply- 10 Major Factors Explained in Detail | Macroeconomics

Factors Affecting Money Supply

Factors Affecting Money Supply 

A country’s money supply can be described as the total amount of money available at a particular time in its economy. Among the types of money are cash, coins, check deposits, and savings accounts. People can borrow money at different interest rates depending on the money supply, which influences economic activity, inflation, and interest rates.

Most countries’ central banks, such as the Federal Reserve in the United States, measure the money supply. In order to increase or decrease the money supply, the central bank can buy or sell government securities.

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