The term "money supply" refers to the total amount of money available in an economy at a specific time. This includes physical currency, such as coins and banknotes, as well as digital money held in bank accounts. Central banks, like the Federal Reserve in the United States, monitor and manage the money supply to influence economic activity. Changes in the money supply can affect inflation, interest rates, and overall economic growth. When the money supply increases, it can lead to more spending and investment, while a decrease may result in reduced economic activity. Policymakers use various tools to regulate the money supply to maintain economic stability.