The Federal Money Supply

The economic indicator, money supply, is a statistic of the money amount in the United States. There are three categories which include portions of the money supply that is more liquid than the next measure; M1, M2, M3. To control this supply there is the Federal Reserve Bank, who has three methods to control the supply of money into the economy. The first is the buying and selling of US treasury bonds and notes. The second is raising or lowering the federal funds rate. And the third is lowering or raising the reserve requirements. …