what is the definition of money supply?
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It's the total quantity of money available in the economy to purchase goods, services, and securities.
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Banks lend money to the public which stimulates the economy. when you want a house, you go to the bank to get a loan. Banks lend money and earn interest on the money they give you.  The central bank of an economy helps to determine the intereste rate in a country which determines how fast an economy will grow.
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It means that when you put your money in the bank, that you are earning money, not only by interest, but later it is money that you would not otherwise had.
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None really. In theory there is some gold in Fort Knox and every time money is printed it's secured by the gold. In truth, the treasury can do whatever they want. They have a theoretical endless amount of money. Of course, if they print/use too much money - they'll cause inflation that that in turn will lower the purchasing power of that money so the government should be cautious about that.
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supply is what the person what at a sertain price if it sells a lot the price will go up and no one buy then the price drops
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Officially, look here: http://www.investopedia.com/terms/m/multipliereffect.asp\n\nBasically it is the fact that the banks lend out a certain amount of money while still actually retaining that money in the bank. Therefore, the money lent out is "created" (on the assumption that it is going to be paid back) and then the person it is lent to uses that money to purchase something. The business that is purchased from then puts the "created" money in it's bank, and then that bank lends out that money again, creating even more money. This continues, multiplying the amount of "money" being exchanged in the economy.
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It largely depends on how self sufficient the country is.  When you say "enough money"  are you referring to a certain level of profit or actually referring to loss?
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Definitions of 'Money' : \n1. A commodity or asset, such as gold, an officially issued currency, coin, or paper note, that can be legally exchanged for something equivalent, such as goods or services. \n2. As defined by common law: a medium of exchange authorized or adopted by a domestic or foreign government and includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more nations.\nAlso know as Moola, Dinero, Bread, or Cash.\n\nmon·ey (mmn’–) : n., pl. -eys or -ies. \nA medium that can be exchanged for goods and services and is used as a measure of their values on the market, including among its forms a commodity such as gold, an officially issued coin or note, or a deposit in a checking account or other readily liquifiable account. \nThe official currency, coins, and negotiable paper notes issued by a government. \nAssets and property considered in terms of monetary value; wealth. \nPecuniary profit or loss: He made money on the sale of his properties. \nOne’s salary; pay: It was a terrible job, but the money was good.\nAn amount of cash or credit: raised the money for the new playground. \nSums of money, especially of a specified nature. Often used in the plural: state tax moneys; monies set aside for research and development. \nA wealthy person, family, or group: to come from old money; to marry into money.\n\nmoney, term that actually refers to two concepts: the abstract unit of account in terms of which the value of goods, services, and obligations can be compared; and anything that is widely established as a means of payment. Frequently the standard of value also serves as a medium of exchange, but that is not always the case. \nEvolution\nMany ancient communities, for instance, took cattle as their standard of value but used more manageable objects as means of payment. Exchange involving the use of money is a great improvement over barter, since it permits elaborate specialization and provides generalized purchasing power that the participants in the exchange may use in the future. The growth of monetary institutions has largely paralleled that of trade and industry; today almost all economic activity is concerned with the making and spending of money incomes.\nFrom the earliest times precious metals have had wide monetary use, owing to convenience of handling, durability, divisibility, and the high intrinsic value commonly attached to them. Whether an article is to be regarded as money does not, however, depend on its value as a commodity, except where intrinsic worth is necessary to make it generally acceptable in exchange; the relation between the face value of an object used as money and its commodity value has actually become increasingly remote (see coin). Paper currency first appeared about 300 years ago; it was usually backed by some “standard” commodity of intrinsic value into which it could be freely converted on demand, but even during the early development of currency, issuance of inconvertible paper money, also called fiat money, was not infrequent (see, for example, Law, John). The world’s first durable plastic currency was introduced by Australia in a special issue in 1988 and in a regular issue in 1992. Plastic bills are more resistant to counterfeiting than paper, and a number of countries now issue some plastic currency.\nThe importance of money has been variously interpreted. While the advocates of mercantilism tended to identify money with wealth, the classical economists, e.g., John Stuart Mill, usually considered money as a veil obscuring real economic phenomena. Since the mid-20th cent., a group known as the monetarists has given increasing attention to the role of money in determining national income and economic fluctuations.\nThe Monetary System of the United States\nThe monetary system of the United States was based on bimetallism during most of the 19th cent. A full gold standard was in effect from 1900 to 1933,
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when the child starts bringin in money
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Technically, money supply is not inflation - but it is empirically associated with inflation.  \n\nInflation is typically taken from a consumer price index from a fixed basket of goods and services. While UK M1 rose 14.5% on broad measures for September 2006 (but only 5.1% on narrower measures), consumer prices rose 2.4% in October '06 (vs. 2.3% last year).  \n\n\n\nYou are right to point out that the market is awash in liquidity. Money comes from numerous sources - at its basic core bills, coins, checking and savings.  But the broader money supply (which is the one that matters) includes many other supplies - like the capital markets. \n\nWhere is all this cash coming from?  \n\nFirst and foremost, it is coming from loose monetary policy, residual from low interst rate environment post-9/11.  As interest rates went to 40-year lows in the US, Japan and Europe, borrowing costs got so cheap as to be extremely cheap.  This trigger asset reflation in real estate and commodities. Indirectly, it also help spur corporate earnings growth (double digit in the US, whereupon 7% is more like the average growth).  The asset reflation also gave consumer a base to start borrowing from, dipping into equity saved up in their houses. \n\nSecondly, the typical brake on liquidity - government bonds - has not been working.  Typically, centralized banks and treasuries issues more paper in order to soak up excess liquidity in the system.  For example, the US had to issue lots of new debt in 2005 to cover the costs of post-9/11 security and the two wars.  However, large trade imbalances have lead Asian and Gulf countries to purchase large amounts of these issues to 1) stabilize interest rates in countries with fixed or quasi-fixed currency regimes (e.g. China) or keep interest rates stable in those markets with floating currencies.   \n\nSo money supply has surged but without the surge in wages (revenue-side inflation) or prices (cost-side inflation).  How?  Basically, we are seeing a tsunami of capital formation - not at the consumer level - but at the corporate, government and asset level.  We are already seeing the side-effects of this capital formation through the emergence of private-equities, rise of hedge funds and record pace of corporate earnings. \n\nWhile we b*tch and moan about inflation at 3-4%, clearly we have short memories.  Woe were the days back in the 80s when itnerest rates were in the twenties or the seventies when we had to wait in line for gasoline and prices went up so fast that they didn't bother posting the price.  \n\nEverything is relative.  It hurts pretty bad going from a very long period of almost no inflation to "normal" inflation.\n\nBy the way... the US still publishes its M1 and M2, but discontinued M3.
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Offer money (or other valuable consideration) for desired goods or information, usually not belonging to the person being bribed.\n\nExample...  you ask the teacher's aid, "I will give you a hundred dollars for the answers to the science test".\n\nExample 2...  Asking a police officer not to give you a ticket in exchange for money or other 'consideration'.
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Hard money is given DIECTLY to a candidate.   Soft money is given to a PAC, political action committee which then creates advertizing in wwhich they ENDORSE a conadidate, instead of the candidate campaigning himself.  Either way politicians are walking, talking rectums.
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Equivalent Distributed Money, which is on yearly basis to control separated volume of any bank product, ussually in National Treasure Bank of a country run by government.\n\nElectric Data Management - computer based banking\nElapsing Date Minimum - birth/nursery\nEstimated Divertion and Missed - geography\n...etc...
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From the circulation, government print a certain amount of money and release this for circulation, some of it goes to daily use, some end up in foreign shores, other end up in banks, piggy bank, under the matress or become dormant [uncirculated].\n\nThose in circulation will eventually wear out, tear or totally lost like in fire.\n\nGovernment estimate the amount need to be print based on the money that are collected for destruction due to wear and tear and can no longer be used, and an estimate deducted from moeny supply that are in banks or in circulation.\n\nThis number are dymanics and not fix, so every time new money is to be mint, number cruching begin.
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The money has the words "IN GOD WE TRUST" printed on it.  When you pick up money off the ground you're receiving a reward from God.  God is providing for you.
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Inflation is either the production of more money, or an overall increase in prices.  The basic idea behind either of these occurrences is that money is that the value of the dollar (or whatever unit of currency you have) has decreased.\n\nAn extreme example of this is Zimbabwe, where inflation is around 1000%, meaning every year prices increase around 10 times the cost of the previous year.  As a result, a 2-ply square (not roll, but square) of toilet paper costs around $417.  The nation prints more money to keep up, but that in turns further devalues the unit of currency.\n\nIn general, inflation is bad for the economy.
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We say traditionally that money has four major functions. It is a\n\nMedium of exchange\n\n    Whatever people usually give in exchange for the things that they buy is the medium of exchange. As we have seen, this is the function that defines money. \n\nUnit of account\n\n    The unit of account is the unit in which values are stated, recorded and settled. The differences between this and the medium of exchange may seem subtle, but there are a few cases in which the unit of account is different from the unit in which the medium of exchange is expressed. In Britain a few decades ago, Guineas were often used as the unit of account, while the medium of exchange was expressed in Pounds. Both Guineas and Pounds in turn could be expressed in shillings -- the Pound was 20 shillings and the Guinea was 21 shillings. (British currency has since been redefined). \n\nStandard of deferred payment\n\n    This is the unit in which debt contracts are stated. Deferred payment means a payment made in the future, not now. Here, again, it is usually the same as the medium of exchange, but not always. During periods of inflation, people may accept paper money for immediate payment, but insist on some other medium, such as real goods and services or gold, for deferred payment -- because the medium of exchange would lose much of its value in the meanwhile. \n\nStore of value\n\n    Again, this is something that people keep in order to maintain the value of their wealth. Again, while it would usually be the same as the medium of exchange, in inflationary times other media might be substituted, such as jewelry, land or collectable goods. In this sense, money is "set aside" for the future. \n\nHope you did well on your exam!