Back to Glossary
General TradingM
Money Supply
The total amount of money available in an economy at a given time, including cash, coins, and balances held in checking and savings accounts. Central banks monitor and manage money supply to influence economic activity.
Example
“When the US money supply (M2) expanded by 40% between 2020-2022, many traders bought Bitcoin as a hedge against the potential devaluation of the dollar.”