Types of Money supply

Types of Money supply

  • Endogenous (Automatic) Money Supply. This is money supply which is determined   by the level of economic activity.  For example level of output, interest rates, etc.
  • Exogenous (Discretionary) Money Supply. This  is Money  supply  which   is determined    by  the monetary   authority   (Central  Bank  or Ministry   of finance)  and  it does  not  depend   on the level  of economic  activity.

 

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