Demand deposits and time deposits with commercial banks both are included in money supply of a country
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Demand Deposits like cash reserved in commercial bank can be withdrawn at anytime. Time deposits like FD { Fixed Deposit } can be stabled for a period of time. Both of these deposits included in money supply of country because
Explanation:
RBI( Central Bank ) is mainly responsible for money supply in economy of a country.
It supply money to the commercial bank to provide credit facilities.
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