Discuss and Analysis on Supply of Money

General objective of this article is to Discuss and Analysis on Supply of Money. Here discuss Supply of Money in economics terms with proper examples. There are various definitions of the supply of money. M1 is narrowest and most commonly used to introduce supply of money. It incorporates all currency (notes and coins) in circulation, all checkable deposits held on banks, in addition to all traveler’s checks. A somewhat broader measure of the supply of income is M2, which includes each one of M1 plus savings in addition to time deposits held on banks.