Question

money supply means:

1. the amount of bonds issued
2. the value of cryptocurrency
3. the money one person holds
4. the total money available in the economy

money demand is:

1. the total amount of money banks print
2. the number of debit card purchases
3. how many bonds the government sells
4. how much people want to hold in cash or deposits

Explanation:

Money Supply Question

To determine the correct definition of money supply, we analyze each option:

• Option 1: Bonds issued are related to debt financing, not money supply.
• Option 2: Cryptocurrency value is not the standard definition of money supply (which focuses on traditional money in the economy).
• Option 3: Money one person holds is personal wealth, not the total in the economy.
• Option 4: Money supply is defined as the total money available in the economy (including cash, deposits, etc.).

For money demand, we evaluate the options:

• Option 1: Money banks print is related to money creation, not demand (which is about people's desire to hold money).
• Option 2: Debit card purchases are transactions, not the demand for holding money.
• Option 3: Government bond sales are fiscal/monetary policy actions, not money demand.
• Option 4: Money demand is how much people want to hold in cash or deposits (their desire to hold money for transactions, precautionary, or speculative purposes).

Answer:

1. The total money available in the economy

Money Demand Question