Enter the change in reserves and the money multiplier into the calculator to determine the money supply.

## Money Supply Formula

The following formula is used to calculate a money supply.

MS = R * MM

• Where MS is the money supply
• R is the change in reserves
• MM is the money multiplier

## Money Supply Definition

Money supply is defined as the product of the change in value of the reserves and the money multiplier.

## Money Supply Example

How to calculate the money supply?

1. First, determine the change in reserves.

Calculate the total change in reserves of a country.

2. Next, determine the money multiplier.

Calculate the money multiplier to be applied to the reserves.

3. Calculate the the money supply.

Using the formula, calculate the money supply.

## FAQ

What is a money supply?

A money supply is a measure of all of the liquid instruments and currency of a countries economy.

What is included in money supply?

Usually, cash and cash equivalents such as deposits that can be used as cash are considered in the money supply.