Question

Traditional measure of money supply includes:
A) demand deposits and time deposits
B) currency and time deposits
C) currency and demand deposits
D) demand deposits and term deposits​

Answer 1

Answer:

options (d) mrak branlist mark

Answer 2

Option A is the correct answer.

Traditional measure of money supply includes demand deposits and time deposits.

1. Traditional measure included M1, M2,M3 and M4 money.
2. Measures that are used currently  are M0, M1, M2, M3, M4 money.
3. M0 was introduced under new money which comprises of reserve money.
4. Deposits included in traditional measures are:

• deposits with post office
• time deposits
• saving deposits with post office
• demand deposits