Question

When money supply is viewed over a period of time called as?

Answer 1

Answer:

Money supply is the total volume of money in circulation between the public over a period of time. Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money.

Answer 2

Answer:

When the money supply is viewed over a period of time called a STOCK CONCEPT.

Explanation:

• Money supply is the total supply of money in an economy at a point of time.
• It is calculated at a point of time that's why it is called STOCK CONCEPT.
• Money supply has four parts i.e. M1, M2, M3, & M4.

• M1 = currency held by public + demand deposits + other deposits
• M2= M1 + post office saving deposits.
• M3 = M1 + net time deposits with commercial banks.
• M4= M3 + all deposits with post office savings banks.

1. M1 is called as Narrow money
2. M3 is called broad money.
3. M4 is the widest form of money.

The arrangement of M1 , M2 , M3 , & M4 is in the order of liquidity which means M1 is the most liquid and M4 is the least liquid among all.

∴When the money supply is viewed over a period of time called a STOCK CONCEPT.

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