state the meaning and components of money supply
Answers
Answer:
Supply of Money: Money supply means the total amount of money in an economy. The effective money supply consists mostly of currency and demand deposits. ... Some economists also include near money, or such liquid assets as savings, deposits and government bills in the money supply.
Explanation:
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Answer:
Supply of Money: Money supply means the total amount of money in an economy. The effective money supply consists mostly of currency and demand deposits. ... Some economists also include near money, or such liquid assets as savings, deposits and government bills in the money supply.
Money supply consists of various components as follows: Currency, demand and time deposits in commercial banks, and other types of deposits are the total amount of money in an economy. Definition of supply of money varies depending on the components which are included and excluded.