Money Supply is a flow concept (True or False with Reasons)
True or False with Reasons:
Money Supply is a flow concept.
Anurag Pathak Changed status to publish December 15, 2023
False,
Money Supply is a ‘stock concept’ as it is measured at a particular point of time.
Money supply consists of:
- Currency with public
- demand deposits of the public with the commercial banks
thus when currency (notes and coins) quantity is measured. It is measured at a point of time.
For example:-
how much ₹ 500 notes are in public hand at 31st March, 2024.
Anurag Pathak Changed status to publish December 15, 2023