Ans. The money supply is the total amount of monetary assets available in an economy at a period. Moreover, the demand for money involves the desired holding of financial assets which is recorded as it affects the inflation, exchange rate, price level of goods, and the business cycle.
It also expands the supply of money more slowly than average. This process is implemented to deal with unemployment and inflation of a country. Bonds, GDP, flat money, demand deposits, etc. also determines the working of money and supply.