This is all the money that circulates regularly between people and companies, that is, they are active funds distributed throughout a nation, through large financial entities they are responsible for transforming them into material used to carry out activities of the type economic. In other words, it is the money that most people use in everyday life, being present in a wide variety of scenarios, such as purchasing products and selling items, these being the most basic.
The printing and distribution of banknotes and coins is designated particularly and especially to a Central Bank, which manages most of the economy of a nation. However, this includes different " mechanisms " that help in the process of injection or extraction of money or currency in the country. For example, in the open market, the sale and purchase of securities, as well as the mandatory deposit or legal reserve, which consequently dictates, all banks must set a limit for taking money by a common consumer, that is, if you have deposited a certain amount of money, only part of it will be received.
Likewise, there is a national reserve, which represents the " savings " of the country, but these do not represent a material of high impact with regard to monetary circulation. In conclusion, the money supply constantly affects the economy of a country, so it is always sought to maintain a pronounced balance between the two.
