Chapter 16 Reflection

The phrase “printing money” tends to be tossed around in discussions about the money supply.  How important is cash to the overall money supply?  In our system the Federal Reserve Board has at least some control over the money supply.  How are they related to the Federal government?

Money supply is how much money is avalible within the economy, the term money supply means credit, cash and the other forms of wealth. Cash is important to the money supplies but all of the other forms are even more important. Credit seems to be more important because to purchase many items require you to have good credit to even consider allowing you to buy it.

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