What does the Reserve Bank of Australia use to indicate the money supply?

The Reserve Bank of Australia (RBA) uses financial aggregates as key indicators of the money supply within the economy. Financial aggregates refer to various measures of the total amount of money available in the economy at a specific time. This can include components such as currency in circulation, demand deposits, and other forms of deposits that can be quickly converted into cash.

By analyzing these financial aggregates, the RBA can gauge the extent of liquidity in the economy and the effectiveness of its monetary policy, including how interest rates and regulations affect money growth. Monitoring changes in these aggregates enables the RBA to make informed decisions on monetary policy settings to achieve its objectives, such as controlling inflation and ensuring stable economic growth.

In contrast, the other options mentioned do not specifically serve as primary indicators of money supply. Monetary indicators can include broader measures of economic health and activity but are not directly focused solely on money supply. Economic balances and liquidity measures serve different purposes within the broader framework of economic analysis and do not encompass the specific data used to monitor money supply changes as effectively as financial aggregates do.