Which of the following statements is correct about Money Supply?
Which of the following statements is correct about Money Supply?
(a) It includes cash reserve of banks
(b) it is a flow variable
(c) It refers to stock of money held by public at a point of time
(d) It refers to stock of money held by public over a period of time
Anurag Pathak Changed status to publish December 15, 2023
Ans – (c)
Explanation:-
Money supply refers to the stock of money held by the public at a point of time.
It has two components:
1. Current held by public
2. demand deposits of public with the commercial banks
Anurag Pathak Changed status to publish December 15, 2023
