According to The Economist the supply of money is ideal discovered unrecognized to examine through the liquidity that exist in the mechanism.

Liquidity is the amount of money flowing in the device which is the base for study of money supply.

With the amount of money flowing or liquidity we suppose The assets or the cash that is flowing in the device available for usage in society.

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Economists researching the money supply categorize the condition of the money based on liquidity. The term liquidity is supplied in economics to signify exactly how conveniently you can get an asset, exactly how straightforward it is to transform assets to cash and to get your money whenever you need it. According its meaning liquidity is most vital thing as soon as specifying the money.



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