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

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## 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?

**First, determine the change in reserves.**Calculate the total change in reserves of a country.

**Next, determine the money multiplier.**Calculate the money multiplier to be applied to the reserves.

**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.

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