{"id":66370,"date":"2020-10-12T12:13:48","date_gmt":"2020-10-12T06:43:48","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=66370"},"modified":"2021-04-21T16:23:38","modified_gmt":"2021-04-21T10:53:38","slug":"impact-of-demand-deposit-withdrawal-on-aggregate-money-supply","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/impact-of-demand-deposit-withdrawal-on-aggregate-money-supply\/","title":{"rendered":"Impact of demand deposit withdrawal on aggregate money supply"},"content":{"rendered":"<p><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">The\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">money supply<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">\u00a0is a measure of the total amount of monetary assets within an economy at any given time.\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">The withdrawal of money from Demand Deposit Account\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">does not change the aggregate money supply\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">as\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">the amou<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">nt withdrawn remains in circulation. The only factor that changes is that the\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">status of <\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">mone<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">y has\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">changed\u00a0<\/span><\/span><span class=\"TextRun SCXW252333954 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW252333954 BCX0\">from \u2018Demand Deposits with the Banking System\u2019 to \u2018Currency with the Public\u2019.<\/span><\/span><span class=\"EOP SCXW252333954 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:360}\"> Thus the aggregate Money Supply will remain unchanged.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0money supply\u00a0is a measure of the total amount of monetary assets within an economy at any given time.\u00a0The withdrawal of money from Demand Deposit Account\u00a0does not change the aggregate money supply\u00a0as\u00a0the amount withdrawn remains in circulation. The only factor that changes is that the\u00a0status of money has\u00a0changed\u00a0from \u2018Demand Deposits with the Banking System\u2019 to \u2018Currency&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/impact-of-demand-deposit-withdrawal-on-aggregate-money-supply\/\">Continue reading <span class=\"screen-reader-text\">Impact of demand deposit withdrawal on aggregate money supply<\/span><\/a><\/p>\n","protected":false},"author":10308,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-66370","post","type-post","status-publish","format-standard","hentry","category-economy-2","entry"],"jetpack_featured_media_url":"","views":{"total":13,"cached_at":"","cached_date":1700117982},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/66370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10308"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=66370"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/66370\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=66370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=66370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=66370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}