Transaction Money is the other name Money Supply.
Money supply only includes those components of Money which can readily be used in the settlement of Economic Transactions.
Money supply includes.
- Currency and coins with the public outside banks
- Demand Deposits with the banks
Both components of money can be used at any time in a transaction.
Thus Money supply is itself called Transaction Money.
Anurag Pathak Answered question September 4, 2021
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