Question

state the components of supply of money​

Answer 1

Answer:

Currency includes paper currency and coins, that is notes issued by the RBI and one rupee and other small coins issued by the Government of India. Net demand deposits include deposits held by public and not inter-bank deposits—deposits held by one bank for another.

Answer 2

Answer:

Let us explain the two components of money supply at some length:

Currency with the Public:

Demand Deposits with the Public:

Money Supply M1 or Narrow Money:

Money Supply M2:

Money Supply M3 or Broad Money:

Money Supply M4:

High-Powered Money (H):

Money Multiplier:

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