ELI5: Explain Like I'm 5

Broad money

Broad money is like a big bucket of money that includes all of the different kinds of money people have, like cash, checkings accounts, and savings accounts. When we talk about broad money, we're saying how much money people and companies have all around the world, not just in one place. Broad money is very important because it helps us to measure and understand how much money people have in the economy.