Question

Monetary Policy: How does ATMs affect the money supply?

Answer 1

Since the introduction of ATMs In different countries the effect of money supply have been increased at greater pace. Since ATMs have ease the withdrawal of money therefore people reach to their money at ease and withdraw more money. Here one thing is to be keep in mind that people though withdraw more cash but they also hold money in smaller amount which means that they are consuming greater percentage of the amount which is withdrawn from ATM which increases the supply of money in the market.