Western Union and MoneyGram both propose that shoppers by no means send money to strangers using their services. Considering the fact that the money supply consists of various financial instruments (generally currency, demand deposits and different other forms of deposits), the quantity of money in an economy is measured by adding together these financial instruments developing a monetary aggregate. In this way, money gives consumers the freedom to trade goods and services quickly without having obtaining to barter.
Modern monetary theory distinguishes amongst various strategies to measure the money supply, reflected in diverse forms of monetary aggregates, using a categorization technique that focuses on the liquidity of the monetary instrument made use of as money. Citation necessary The major functions of money are distinguished as: a medium of exchange a unit of account a store of value and, occasionally, a standard of deferred payment 4 5 Any item or verifiable record that fulfills these functions can be regarded as as money. These monetary instruments collectively are collectively referred to as the money supply of an economy.