What does the term "money supply" refer to in economic terms?

The term "money supply" in economic terms refers to the total amount of monetary assets available in an economy at a specific time. It encompasses various forms of money, including cash, coins, and balances held in checking and savings accounts. By measuring the money supply, economists can gauge the liquidity available in the economy, which helps in understanding inflation, interest rates, and overall economic health.

The choices provided often represent narrower concepts. While "cash" refers just to physical currency, "mortgage money" suggests a specific type of financing tied to real estate, and "total demand" relates more to the demand for goods and services in an economy rather than the overall funds available. Therefore, the correct answer encapsulates the broad definition of money supply, making it the appropriate choice.