What does money supply mean?

Money supply refers to the total amount of monetary assets available in an economy at a specific time. It includes various forms of money, such as cash, coins, and balances held in checking and savings accounts. Economists often categorize money supply into different measures, such as M1 (liquid assets) and M2 (M1 plus near-money assets), to analyze economic activity and guide monetary policy. Changes in money supply can influence inflation, interest rates, and overall economic growth.