Role of Financial Markets

Money Supply: The total supply of money in the economy: credit cards, cash, debit cards, cheques etc

Narrow Money: Money that can be spent immediately - Cash, Credit/Debit cards

Broad Money: Money that is harder to access and cant be spent immediately - narrow money + money in gov bonds + saving accounts + cheques

3 types of Financial markets:

Money market - where you can buy and sell short-term financial assets