Question

money aggregates.

Answer 1

Answer - The money aggregates are the various broader criteria which are used to measure the supply of money in the economy. There are the numerous money aggregates which include the different form of money supplies. These are-

M0 - This includes the coins and the currency notes in circulation.

M1 - This includes M0 + demand and checking deposits + travellers checks.

M2 - M1 + saving deposits + other demand deposits + money market shares

M3 - This is called the broad money. It is calculated as M2 + time deposits

Hence these are called the money aggregates and are used to measure the total supply of money in the economy.