 Now, when we already discussed many issues related to money, its definition, its measurement, its evolution over time and finally, we discussed carries of money demand. So now, we move on to another topic which is money supply. This is very important topic as far as monetary policy is concerned. Money supply is very important. Money demand deals with people. The same work that we do has been formulated in the theory of economics. So that was easy to understand. But I and you do not do the money supply. Our decision can play a role but we are actually not controlling it. Since it is not our job directly, we need to understand how to control it. So today, we will start with the process of money supply. Again, I will build my case to define money supply. Money supply means available stock of money on the date mired. I already told you in a lecture that money is a stock variable. It is not mired for a specific time period. Rather, it is mired on a particular date. So, its definition will be clear that the date mired on the date available stock of money in your economy is called money supply. And what happens in this? Since we have read the definition of money and the measurement, we know that it is sum of currency and other liquid assets. And in other liquid assets, we mostly take bank deposits. So much so that if you take only transferable deposits and checkable deposits, then this M1 definition will be made with currency. The question is that if money demand is directly related to common people, then we have read it directly. Money supply, which is not directly our role, the role of central bank or commercial bank is more, our role will also be somewhere, but their role is more. Then why is understanding money supply important? Why do we need to understand this concept? If we are students of economics, then why is it necessary for us to understand the process of money supply? Look, remember the first thing. You are not a student of economics. One thing is clear that money affects important variables of economy. When I started this course, then in the introduction of monetary economics, I told that it deals with the subjectivity of the effects of other economic variables of money. And other economic variables are related to us. And what are those? Employment is related to us. Income is related to us. Consumption is related to us. Return on asset is related to us. So money affects all of these variables. So this means that money affects all of us. We all have a direct impact on money. That is why understanding money is important. Plus policy perspective that monetary policy is an important policy in your economy, you cannot understand it until you understand the process of money supply. Now when the definition of money supply is done, and its importance is also done, the next thing is that what are important questions regarding money supply? What are important questions related to this process? The first question is how is money supply determined? In an economy, when money is measured on a single date, then who determined the value of the value of the value? The second question is who controls money supply? Who controls the role of money? The third point is what causes money supply to change? How does money change? On a single date, after 6 months, the value of the value of the value of the value of the value changes. And finally, how to control money supply? It is like someone has to control money supply, and it changes. All of these things are done. How? Even if we know who controls the money supply, then the question remains how? All of these questions will be discussed in the process of money supply. Different lectures. Now, in the determination of money supply, since we have read the measurement of money supply, then we have a very fair idea of the major role in the determination of money supply. That role is bank deposit. In a lecture, we also saw that after the measurement of M1, we saw that in Pakistan, in July 2022, 35% currency was there, currency in circulation, and 65% is the checkable deposit. This means that the biggest role of bank deposit is in the supply of money. Then the question will be how are bank deposits created? When it comes to the creation of money, then the biggest component of money is bank deposit. Then the question will be how to create bank deposit? Because currency is a small item. We will discuss the point of currency as well, but the main focus will be on bank deposit. The creation of bank deposit, which means the creation of money, when it comes to the creation of bank deposit, then there are three players in the creation of bank deposit. This is not a single institution, or a single role or a single duty to determine the value of the entire country's money supply. In fact, there are three players in the role. What are they? The central bank, which is the state bank of Pakistan in the case of Pakistan. Banks are depository institutions like Bank Limited, Allied Bank, Alphala Bank, MCB Bank and so on, and the banks that operate in Pakistan. Finally, depositors. I will explain to them that they are depositors, central bank, and some more details. When we talk about the central bank, the central bank is an institution of the government, which regulates the banking system. The banking system means that the other banks work in the system, except for the central bank, like the commercial banks, then who has to regulate them? The central bank. And what is the basic work of the central bank? From its functions, from its basic functions, what is the conduct of monetary policy? We will assign a good weight of this course to the monetary policy. The central bank, which conducts the monetary policy, is the central bank. The state bank of Pakistan in the case of Pakistan. Depository institution is the financial intermediaries. What does intermediary mean? It means that they take deposits from depositors, loan investors, which means that they play the role of intermediation. They will take deposits from depositors, and the person who has to pay the loan will pay the loan. And in this, mainly, commercial banks come or some other financial institutions come. And finally, depositors. What does depositor mean? Depositors in whose banks can be deposited. Now, they can be individuals, ordinary people, and institutions as well. For example, an university can account in a bank. So, this institution can account in a bank. Whereas, even I can account in a bank. So, this is an individual's bank account. So, this means that individual institutions will come in both depositors, whose banks have accounts or deposits. Thank you.