Business
JacalynMoorhouse
7

Why are there more elements to the money supply than just the money that is actively circulating?

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rekeyia21

The money that is actively circulating is specifically identified as CASH. It is a part of the money supply. Basic money supply are all the cash held by the public either on hand or in their transaction accounts like savings or checking accounts. These are all money because they have the ability to purchase goods and services aside from cash exchanges.

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