What are the two types of money, Macroeconomics

What are the Two types of money

In most countries, one can identify two "types of money":

  • Currency and coins
  • Bank deposits

Total value of all the money in a country at a given point in time is known as the money supply and this is a vital macroeconomic variable. Reason for the importance of money supply is that it measures how much is available for immediate consumption. There is a significant relationship between supply of money and inflation.


Posted Date: 9/13/2013 2:23:32 AM | Location : United States

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