A method of measuring the money supply by looking at money as a medium of exchange is the

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The transactions approach focuses on the amount of money people use to buy goods and services, which is an important function of money as a medium of exchange. The fiduciary monetary system is a legal concept that allows banks to create money, while capital control refers to government policies that restrict the movement of capital in and out of a country. The liquidity approach measures the money supply based on how easily assets can be converted into cash.

A Method of Measuring the Money Supply by Looking at Money