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jarptica [38.1K]
3 years ago
13

Define money and identify the different forms that it takes in the nation's money supply

Business
1 answer:
viva [34]3 years ago
8 0

Answer:

Money is defined as something that serves as a medium of exchange.

The money supply is the total amount of money available in an economy. It includes:

  • M1 includes coins and notes (bills) in circulation plus other money equivalents that are easily liquidated.
  • M2 includes M1 plus short term bank deposits and 24 hour money market funds.
  • M3 includes M2 plus long term bank deposits and money markets with more than 24 hour maturity.

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