List and explain the three different definitions for money in South Africa. These definitions are used to determine the quantity of money (6) 

The Reserve Bank of South Africa is the country's central bank, in charge of monetary policy. The liquidity of money is what defines it. In South Africa, there are three broad definitions of money: M1, M2, and M3.

Step-by-step explanation

Highly liquid assets such as coins and notes, as well as domestic private sector checkable and transmission deposits with monetary institutions, make up the M1 money supply.

M2 is a less liquid money supply that includes M1 as well as all other domestic private sector short-term and medium-term deposits with monetary institutions.

M3 money supply is the broadest definition of money supply, equal to M2 and all domestic private sector long-term deposits with monetary institutions. Long-term notice deposits mature after more than six months. M3 is the most comprehensive measure of the country's aggregate money supply because it includes both "medium of exchange" (liquid) and "store of value" categories of money.