Final answer:
The money supply in the U.S. is determined by the Federal Reserve, and it consists of two main classifications: M1 (very liquid forms of money) and M2 (includes M1 plus less liquid forms).
Step-by-step explanation:
In the United States, the money supply is determined by the Federal Reserve, which is the central bank of the country. The Federal Reserve has the authority to regulate monetary policy, including the management of the money supply. The money supply can be classified into two types: M1, which consists of very liquid forms of money like cash and checkable deposits, and M2, which includes M1 plus less liquid forms of money such as savings accounts and certificates of deposits.
The money supply in the U.S. is determined by the Federal Reserve (option b). The Federal Reserve, also known as the central bank of the United States, is responsible for monetary policy and defines money according to its liquidity. They have the authority to increase or decrease the money supply through actions such as open market operations.