Monetary supply refers to the total amount of money available in an economy at a specific time. It includes various forms of money, such as cash, coins, and balances held in bank accounts. Central banks, like the Federal Reserve in the United States, manage the monetary supply to influence economic activity, control inflation, and stabilize the currency. There are different measures of monetary supply, commonly categorized as M1, M2, and M3. M1 includes the most liquid forms of money, while M2 adds savings accounts and other near-money assets. Understanding monetary supply helps economists and policymakers make informed decisions about economic growth and stability.