Question
What is the money supply of the United States?
the total amount of money in the US economy
the sum of all deposits being held by US banks
the profits made by banks from the interest payment on loans
the total amount of money deposited within the central bank
the total amount of money in the US economy
the sum of all deposits being held by US banks
the profits made by banks from the interest payment on loans
the total amount of money deposited within the central bank
Answers
GPT-4o mini
The money supply of the United States refers to **the total amount of money in the US economy**. It encompasses various forms of money, including cash in circulation, demand deposits, and other liquid assets. The money supply is typically measured using different aggregates, such as M1, which includes physical currency and demand deposits, and M2, which includes M1 plus savings accounts and other types of deposits.
To clarify the other options:
- **The sum of all deposits being held by US banks** is part of the money supply but does not encompass all forms of money.
- **The profits made by banks from the interest payment on loans** is related to bank earnings, not the money supply.
- **The total amount of money deposited within the central bank** refers to reserves, which are part of the banking system but not a complete measure of the money supply.
Therefore, the correct answer regarding the money supply is "the total amount of money in the US economy."
To clarify the other options:
- **The sum of all deposits being held by US banks** is part of the money supply but does not encompass all forms of money.
- **The profits made by banks from the interest payment on loans** is related to bank earnings, not the money supply.
- **The total amount of money deposited within the central bank** refers to reserves, which are part of the banking system but not a complete measure of the money supply.
Therefore, the correct answer regarding the money supply is "the total amount of money in the US economy."