Which of the following statement is false? (a) Money supply is a stock concept
Which of the following statement is false?
(a) Money supply is a stock concept
(b) High-powered money includes demand deposits of commercial banks, besides currency with the public
(c) M1 includes net demand deposits
(d) None of these
Anurag Pathak Changed status to publish December 15, 2023
Ans – (b)
Explanation:-
High-powered money consists of two components:
1. Currency with the public
2. Cash reserves with the banks
It does not includes demand deposits of commercial banks.
Anurag Pathak Changed status to publish December 15, 2023
