What is M0 and M3 defined as?
Answer:
M0 is the currency in circulation, only bank notes and coins.
M3 is the broad money.
Learn More :
Financial Markets
- What is it called when something is under the LM curve?
- What is it called when something is above the LM curve?
- What position is the LM curve if it is in the interest rate control and money supply control?
- What is Walras' Law?
- What is the formula for the LM curve?
- What are the three Chanel's for which the CB can control the money supply?
- What is the equation to find the money supply?
- What is the reserve rate equation?
- The interest rate equilibrium?
- What happens to the balance sheet of the CB when they perform an expansionary open market policy?
- What is an open market operation?
- What effect increases of decreases the demand for money?
- What is the formula for money demand?