Question

What are the components of money supply? is it M1, M2, M3, M4 or currency component and deposit component?

Answer 1

Hi!
There are two components of money supply:

The currency component: it consists of the currency notes and coins, which is issued by the Monetary Authority of a country.

The deposit component: it consists of the savings or current account deposits, which is held by the public in different banks of the country. 

Answer 2

Answer:

Money supply refers to the total stock of money of all types ( currency as well as demand deposits) held by the people of a country at a given point of time. Money supply is measured in several ways which includes M1, M2, M3 and M4 measurement of money supply.D