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Money serves as a medium of exchange, unit of account, and store of value. Money supply includes currency in circulation and demand deposits held in commercial banks. It is measured by different aggregates (M1, M2, M3, M4) with M1 being the most liquid and M3 most commonly used. Money supply is determined by the monetary base provided by the central bank and the money multiplier which is influenced by reserve requirements. Inflation refers to a sustained increase in the general price level over time and can

Author

Ananda Preethi

Language

EN