How supply of money is governed in India economy? explain
Answers
Answer :
What is meant by Money Supply?
The money supply is the total value of money available in an economy at a point of time.
Money Supply is also known as Money Stock.
What constitutes money?
There is no uniform definition of money.
Common public usually associate currency with money. As you know, bank deposits are also money.
For different calculations, different components are included as ‘money.
Definition of Money Supply
Money Supply can be defined as the money circulating in an economy.
As money supply is connected with ‘circulating money’, only the highly-liquid forms of money like currency and bank deposits are usually considered.
Money Supply is measured and expressed using different monetary aggregates like M1, M2, M3, M4 etc.
Terms like Narrow Money and Broad Money are also used to denote money supply.
Explanation:
According to the gold that the government has from that acrroding Money is printed.