Money has entered our lives unnoticed and for a huge amount of time is present in our trade relations, replacing the famous formula “goods-product” with “money-money-Road”, t. e. Having become a binder (exchange) link between one product (service) and another product (service). Money is a universal product that can “weigh” almost everything that we see and appreciate … But let’s now move directly on to consider the topic of this article. What is money supply? This is the amount of all cash that is in circulation, including non -cash money in the accounts that have legal entities and individuals, as well as the state. It consists of five cash units that are divided depending on liquidity (the rate of transfer of money in one form or another in cash). Zero (first in a row) unit consists of cash in circulation. The first (the second row) the unit consists of zero and checks, deposits on demand. The second (third in a row) consists of the first unit and urgent deposits. The third (fourth in a row) consists of a second unit and savings deposits. The fourth (fifth in a row) consists of a third unit and securities. It is necessary to make a reservation that in each country the composition of the units differs, except for zero and here is a classification according to the IMF. The analysis of the money supply in circulation allows us to say: what means of savings are used by individuals, legal entities, which of them are most preferable, and the government can pursue both soft and tough monetary policy by regulation of the money supply. The money turnover implies the turnover of a mass of money (all its units) in a particular country. In the modern world, non -cash circulation prevails, t. e. one that does not require the presence of real money, but only a transfer, for example, from one billing account to another, billing account. This turnover can be: monetary, monetary, monetary and financial. In the first case, the money circulation serves calculations for various goods/services, as well as inaccurate obligations. In the second case, credit relations of individuals, legal entities and state are served. In the third – financial issues of subjects. Thus, the concepts of money supply and turnover complement each other.
