Money supply, narrow money and broad money

• What is money supply?:

  • Money supply is the total financial assets functioning as money within an economy
• What is money supply?

  Money supply is the total financial assets functioning as money within an economy
• What is narrow money?:

  • Narrow money is part of money supply made of cash and liquid assets from banks and building society deposits
• What is narrow money?

  • Narrow money is part of money supply made of cash and liquid assets from banks and building society deposits
• What is broad money?:

  • Money supply combining cash , liquid assets and illiquid assets
• What is broad money?

  • Money supply combining cash , liquid assets and illiquid assets
• What are illiquid assets:

  • Illiquid assets are assets that cant be quickly converted to cash
• What are illiquid assets?

  • Illiquid assets are assets that cant be quickly converted to cash
• A liquid asset is capable of being converted to cash quickly
• What is an example of an illiquid asset?

  houses