Question

What is the meaning of supply of money? Explain the concepts of supply of money given by Reserve Bank of India.

Answer 1

In an economy the total value of momentary assets at a specific time or particular time is called as the supply of money.

According to the reserve bank of India the supply of money is very important for not only for the economic development of the country.

It also has other purposes such as to achieve the stability of prices in the economy.

It should be stable and should not have both the inflation or deflation.